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

To: Susan Saline who wrote (23222)	6/1/1998 9:42:00 PM
From: JHR	Read Replies (3) \| Respond to of 95453

Susan, I wish I could share your optimism, especially since I'm for the most part pretty fully invested in this sector. Consider: 1) We are in for 3 weeks of the companies with bad news doing their pre announcement of such. 2) the number of stocks above 200 day moving average is sinking like a rock. 3) The advance decline line is deteriorating. 4) The number of new highs is sliding. 5) Oil prices have been in the 14 - 15 range for a good 6 months and back in December the driller execs were saying that an extended stay below 16 would cause trouble. Add to this that the OPEC cut if it happens probably wont have an impact until August. Whats to bring buyers into this sector before late July or August? Help me. I need some optimism.

To: Susan Saline who wrote (23222)	6/1/1998 11:55:00 PM
From: pz	Read Replies (2) \| Respond to of 95453

Sue, I know this is an unpleasant thought, but one that must surely be considered. We are all for the most part assuming that OPEC is going to cut production at their next meeting at the end of this month. What if OPEC decides to do nothing and let oil prices come back on their own when the glut is used up? In this scenario we just thought we saw low prices on our beloved oil service stocks. What amazes me is that there aren't more mergers and takeovers at these low prices. Locally the oil business has gone from boom to bust in 6 months....this is really sickening. Paul