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

To: Teddy who wrote (18896)	4/13/1998 4:11:00 PM
From: Teddy	Respond to of 95453

Mavis must have really looked hard to find anyone even slightly bullish on this sector, but she found a few: ...In many cases, the earnings outlook will depend on the company, says Jim Wicklund, an analyst at Dain Rauscher Wessels in Dallas. He says he has no real questions on companies that are involved in deepwater or the companies that provide equipment or services for the deepwater drilling and exploration market. In addition, he says there will be a renewed interest in where companies operate. "Deepwater, international and domestic gas look strong. Domestic heavy oil looks weak. And there is continued/growing concern on economics on the shelf in the Gulf. So companies are going to get grilled on where they operate." Given recent weakness in the sector, Wicklund emphasizes that if your investment horizon is longer than six months, buying these stocks is still a good opportunity. He believes that some bears have over-reacted to the weak oil price environment. "They assumed that if oil prices were going to drop, that activity would slow dramatically," he says. While there is a current surplus of oil, "virtually everybody in the industry recognizes that we'll eventually have a shortfall." Oil companies will continue to spend through the near-price weakness of oil pricing, he says, "knowing full well the longer-term demand imbalance mandates a higher price."...