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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: chuck weir who wrote (18538)	4/8/1998 11:39:00 PM
From: Douglas V. Fant	Read Replies (3) \| Respond to of 95453

Chuck- From Solomon Brothers Report on Noble Drilling- Assessment of fundamentals of service and drilling industry: "We recently spoke with approximately 15 of the largest oil companies-those with upstream spending of at least $1.0 billion in 1998-and found that none of these companies has yet reduced its 1998 spending plans, that several of them are developing contingency plans, and that none of them believed in a new oil price paradigm. Large oil companies make up approximately two-thirds of the total spending in our survey. Based on recent discussions, we believe that the most likely case would be only a 2%-3% reduction in spending by these companies. "We expect average day rate to advance to almost $60,000 by the end of 1998. "We believe that the market has been discounting bad news on oil prices into stocks with exposure to the price of oil as well as discounting a scenario of flat or negative spending in 1998 and substantial reductions in earnings estimates for oil service and drilling companies. We believe that these stocks remain attractively valued and recommend purchase. Our Top Pick in the drilling sector is Noble Drilling. " [eom]

To: chuck weir who wrote (18538)	4/9/1998 12:05:00 AM
From: papi riqui	Read Replies (1) \| Respond to of 95453

I attended a seminar tonight sponsored by the PHLX and featuring Tom Dorsey of Point and Figure (P&F) charting fame. Now, I don't want to start a food fight between the FAers and the TAers (Tom said he selects companies with the best technical patterns from groups of those with sound fundamentals), but he thinks that those who use FA only are playing the game with one eye closed, citing, for example, all the FAers who touted Micron Tech's great fundamentals all the way from $94 to $17. Anyway, he made some very interesting points about the market in general- he thinks we're in precarious territory and urges caution (i.e., think defensively), and the OEX sector in particular. Tom likes oil services and said that OEX calls look attractive, especially compared to other sectors (many of which he sees as approaching dangerous levels). He also singled out DIVE and VRC as particularly attractive individual plays having very good chart patterns. If you are a trader, however, I think Tom's overall theme was to proceed with caution whatever you do. He also made a very interesting comment on gold, but that is another subject.