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

To: wggm who wrote (18662)	4/11/1998 1:47:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

wggm, I think most of the earnings reports will be very strong. DO may be somewhat weak, but that has probably already been factored in. Conference calls are likely to address strength of offshore drilling and cautious optimism going forward. The concern is likely to be whether utilization and/or dayrates fall off due to lower oil prices. If 1Q results show strong dayrates and high utilization figures during a period of low oil prices, we should see a big rally as confidence is restored. I think a lot of the market focus is extremely myopic. The long-term demand picture for oil & gas drilling is extremely positive. There is next to no construction of jackup rigs and most deepwater rigs will not be coming on line for some time. That should augur for a positive utilization and dayrate picture that should get better over time as oil prices firm up. Baird