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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Lazlo Pierce who wrote (344)	5/20/1998 3:17:00 PM
From: Timelord	Respond to of 14427

David, buying E & P stocks prior to drilling results is like shooting craps, unless you know someone who works on the rig. If you understand the risks involved, then by all means step up to the table. The problem is that even if oil is discovered, if the flow rates aren't what's expected, you'll see a sell off. Of course, you can always miss a good upside move if the data is good, but the development cycle in oil is so long term that there is always a buying opportunity later. Lots of valleys in between wells. Personally, the lack of volume and deterioration in price would make me pause as far as SEV, but then that could just be a result of the slide in oil prices. The problem is, there's no way of knowing. Good luck. Alex