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

To: Tulvio Durand who wrote (20901)	4/30/1998 2:37:00 PM
From: marc chatman	Read Replies (3) \| Respond to of 95453

Tulvio, I thought CDG is all shallow water jack-ups and land rigs.

To: Tulvio Durand who wrote (20901)	4/30/1998 2:41:00 PM
From: pz	Respond to of 95453

Tulvio, My only point was that this is the first time I have heard one of the land drillers actually say that business is stinking. That's all. This thread has been at the forefront of pointing out the weakness in the drillers and right on the money with that call. Locally we see the land drillers slowing down more and more everyday. Regards, Paul

To: Tulvio Durand who wrote (20901)	4/30/1998 3:00:00 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 95453

Tulvio, While the deep drillers are in the best protected position by virtue of their long-term contracts and the strong continuing demand for deep water rigs, it isn't clear that they are the safest stocks. Many have appreciated significantly from their recent lows and carry higher PE's than shallow drillers. I like the deep drillers as predictable long term plays, but I think they may be vulnerable to selloffs based on the combination of lower oil prices and their relatively high PE's. The flip side of the story is how much of the good news is priced into their shares. Though the deep drillers will certainly move up as oil prices rise, they will probably not move up as much as shallow drillers and land drillers. To me, the balance between low current PE and higher appreciation potential for the shallow drillers makes them more attractive options for current buying. Of course, if they drop on fears of low oil prices reducing dayrates, they may become even more attractive. Baird