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

To: marc chatman who wrote (24650)	6/24/1998 11:25:00 AM
From: TulipMania	Respond to of 95453

(COMTEX) B: MARKET SPECIAL: ENERGY FUTURES SELL OFF ON OPEC ACCORD B: MARKET SPECIAL: ENERGY FUTURES SELL OFF ON OPEC ACCORD New York-June 24-FWN--AS MANY EXPECTED, THE NEWS OF fresh oil production cuts by the Organization of Petroleum Exporting Countries (OPEC), which were announced earlier today in Vienna, encouraged some long liquidation and fresh selling interest. Traders said the market had built in the potential for prices to continue to move higher if oil producers were poised to cut more than the bare minimum needed to balance supply and demand.

To: marc chatman who wrote (24650)	6/24/1998 11:31:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

OPEC: Good News/Bad News ??? ...or No News... On a day that OPEC annnounces cuts and RIG & DO are down, with FLC flat... this is certainly not ''The Cure''. I agree with earlier posts that there will indeed be some ''buy on the rumor - sell on the news'', profit taking here. We could see some more ''buying opportunities'' on profit taking with EVI, CDG looking especially attractive, VRC & NE still selling below prior March selloff levels etc. It makes much more sense to enter positions on these stocks now, off of the OPEC announcement ''profit taking'' than it did before we knew what OPEC would do and what the markets reaction would be. Hence to my thinking; this is NOW the best logical entry point that we have seen in the oil sector. A very bullish scenario is highly possible as we have oversold stocks at excellent fundamental values, we have the positive OPEC action and we have lowered analyst earnings expectations - setting up for positive earnings surprises in Q3 & Q4 if crude continues to recover. With crude prices moving up - this problem has not been ''cured'', but at the very least the worst case scenario of $10 - $12 oil is much less likely. There are still lots of bargains based on earnings revisions and historic PE levels in the various sectors. If crude gradually rises to $16-$18 by year end; we could see some great Q3 & Q4 upside surprises going into FY99... where if we see $18 oil by Q1 1999 - the stage will be set for the ''big move''...for those with a 12 month perspective - sure looks bullish based on current valuations to me ! CDG @ $36 & EVI @ $38 -- versus where we can and/or should be in 12 months - gotta love the risk vs. reward ratios here ! I propose the ''Party'' be planned for end of April or 1st of May next year after Q498 & Q199 earnings are out....with $18+ oil and seeing EVI & CDG @ $80, FGII @ $50+ etc. -- my vote is for Las Vegas ! - we should have lots of ''capital gains'' cash to spend by then !