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

To: upanddown who wrote (23689)	6/9/1998 12:49:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

RE: bad news; 3-4 televison spots on CNBC & other financial news channels etc. this a.m. addressed the crude price weakness and mentioned a few reports being released along with analysis of the oft-mentioned cuts not being adequate ... just a general negative tone on OIL in general; just seemed to be more negative OIL news than normal accross the board.... Because of this I expected more substantial selling today, but it looks like more ''death by 1000 cuts'' as someone earlier so aptly termed it. Makes me think we may be at the bottom and that the OPEC meeting coverage will be met with optimism and a rebound... hopefully not followed with a sell off if production cuts are not met and supply does not decrease. MIND looks like a quick opportunity with earnings coming out tomorrow ? Here is a fresh a.m. release from DLJ: OILFIELD SERVICES INDUSTRY WEEKLY RUMINATIONS ''06/08/98 Rating: Outperf. Change: None ÿOilfield Service Earnings Outlook Continues To Erode Oilfield service stocks suffered another week of underperformance, coming on the heels of two prior weeks of weakness. The market seems to be profoundly skeptical and nervous about oil prices near-term and consequently the announcement by the 3 countries behind the earlier Riyadh deal to cut production by a further 450,000 bpd was greeted with relative indifference. However, if other OPEC and non-OPEC countries follow suit in the coming weeks, we believe that oil markets should respond positively, which in turn would be very significant for oilfield service stock performance in the next few weeks. We are working on revising our estimates downwards for most companies, but believe that the downward estimate revisions are already reflected in current valuations and that any further move in oilfield service stocks will be driven by how long oil prices take to recover back to $18/bbl, a level we have no doubt oil prices will return to but are uncertain about the timing. On balance we continue to find the risk-reward favorable and rate the group Outperform. We suggest a barbell approach to investing in oilfield service stocks. On one extreme are companies with good internal drivers such as BHI, EVI, FLC, HAL and HLX and on the other extreme are oil leveraged plays such as GW and NBR. '' ...they have really pounded the table on EVI, HLX and FLC . HLX, I own and it seems to be a ''quiet'' company not much news or strong media exposure, but it is up 8.5 % in the last 6-8 weeks in the face of the sell off - compares favorably against FGII's selloff.. I like their expansion into International markets, an exciting new venture in China - major yard, good backlog and a major fab business as well as the maine/boat business - they're not just a boat company. Very good growth going forward etc. Anyone follow Halter ? - comments...