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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 (23062)	5/29/1998 7:03:00 PM
From: drsvelte	Read Replies (1) \| Respond to of 95453

I just caught a snippet of a report on CNBC's The Edge. Camco was up 4+ today with big volume. The skinny is merger speculation. The reporter suggested that this would possibly ripple through the sector on Monday.

To: Broken_Clock who wrote (23062)	5/30/1998 1:32:00 PM
From: Czechsinthemail	Respond to of 95453

PK, You are right that the "premium" has been taken out of the premium jackup rigs' dayrates. The $64 question is whether that weakness will spread to other dayrates or the premium will be restored. My guess is that the drop in dayrates may have produced a likely worst case unless oil prices drop further, so the upside potential for higher dayrates is much greater than the risk of dayrates going much lower. But we may be seeing a cumulative slowdown in drilling demand as oil prices remain low over a longer period. IMHO, that concern represents the risk that current low prices are reflecting. Baird