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

To: Broken_Clock who wrote (18889)	4/13/1998 2:49:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

PK, Markets are fickle. So predicting which stocks will be the market favorites seems dicey. While I have long maintained that RIG is the strongest company in the sector, that doesn't necessarily mean its stock performance will be the strongest. Both RIG and NE carry relatively high PE's. While I think RIG's performance is likely to be more secure while there are concerns about low oil prices reducing the demand for drilling, the values, particularly for long-term performance, may be more compelling elsewhere. If oil prices begin to strengthen, suddenly the jackup drillers and land drillers become more attractive based on their ability to increase earnings in a stronger demand environment. That, plus considerably lower PE's, may prove to make them superior market performers over time. NE is a funny company because it is still primarily a jackup driller but it is looked upon as a deepwater driller. Its conversion projects and relatively low debt are positives, but at current prices I find other companies relatively more attractive. Baird