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

To: Gator II who wrote (23270)	6/2/1998 1:26:00 PM
From: Minos	Read Replies (1) \| Respond to of 95453

Tuesday June 2, 12:21 pm Eastern Time INTERVIEW - Oil drillers a favorite at Glickenhaus NEW YORK, June 2 (Reuters) - With the market at dizzying levels, veteran Wall Street money manager Seth Glickenhaus says he's backing oil drillers as the best bang for the buck. ''Oil drilling is one sector that's cheap and extremely attractive because they've been badly hit,'' said Glickenhaus, a partner at the New York firm Glickenhaus & Co. In a telephone interview, he rattled off a few of his favorite names in the industry: Noble Drilling Corp. (NE - news), Global Marine Inc. (GLM - news), R&B Falcon Corp. (FLC - news), Ensco International Inc. (ESV - news) and Diamond Offshore Drilling Inc. (DO - news). Among other good buys Glickenhaus also touted were USG Corp (USG - news), a gypsum company, and Peak International Ltd. (PEAKF - news), a maker and marketer of precision engineered packaging for semiconductors and electronic components. ''The market is at giddy heights with very poor values at today's prices,'' he said. Glickenhaus has been on Wall Street for more than half a century, since he started at Salomon in 1934. ''I don't know how people can go to sleep at night without being short big gobs of Microsoft'' Corp. (MSFT - news), he said. He thinks the stock market currently seems to have lost momentum behind its upward thrust and is either spending time consolidating, or possibly topping off ahead of a downturn. ''The jury's still out, but I think chances favor the latter and we're going to see some pain,'' he said. Possible triggers of a downturn could be higher inflation, if the Pacific Rim financial virum becomes more punitive, or if earnings by the ''wonder wonder'' stocks, like Pfizer (PFE - news), Merck (MRK - news), Gillette (G - news) and Coca-Cola (KO - news). In a downturn scenario, he said, all stocks get battered but as the market recovers, the value stocks emerge as front-runners. ''When markets go down, no ladies are left out in the rain, but when things right themselves, the good separates,'' he said. He said brand-name stocks, particularly stocks in the Dow and the Standard & Poor's 500 Index are in the most danger, because they have been driven higher by index-driven buying rather than fundamentals. ''We're still buying a few companies,'' he said, ''but we're ducking the 'name' stocks like sin.''