Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: waverider who wrote (19492)	4/17/1998 11:47:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Well, what do you know? The drillers are back up today -- with that dog ESV leading the pack. Though a rising oil price is no certainty, it does have a nice effect on the drillers. And ESV will be one of the companies that benefits most from stronger oil prices. Today's action may contain a lot of short-covering as much of yesterday's conventional wisdom gets reversed. Then there is the question of value. It sometimes takes rising oil prices, or at least the possibility of rising oil prices to remind people of the underlying value, which remains compelling. It was interesting to me to see how much reaction ESV got around the announcement of possibly lower sequential earnings, since it obscures the probability that year-to-year comparisons will remain strong. While many may complain about Carl Thorne's comments, it is worth noting that once again the company beat estimates and that it has been the most consistent company in the entire drilling sector at doing so. Chances are good the company will beat estimates again three months from now. I think ESV has all the bad news priced in and is simply oversold. That means it shouldn't go down much more if the sector (or the overall market) weakens and should go up more than most if the sector strengthens. good luck, Baird