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To: marc chatman who wrote (25326)	7/8/1998 4:14:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 95453

marc, that's a good question...OTOneH we have posssible continued downtrend, OTOH we have the following : This sector has been hammered beyond any other in the markey, I think, and we know that E & P is continuing to GROW, just at a slower rate. If we can get through the earnings period this quarter without major damage and then see if the sevice/fabs can hold the line through the next quarter, then i think things will turn around in the 4th quarter. BWDIK<g> DO had a huge block either bought or short covering at 37 this afternoon. Do you suppose someone shorted 300k of DO? That seems risky to me. DO at PE of 17 on trailing earnings seems like an excellent buy!

To: marc chatman who wrote (25326)	7/8/1998 4:31:00 PM
From: SJS	Read Replies (3) \| Respond to of 95453

Marc, I can't believe that you would even contemplate taking huge losses to get out this sector at or near the bottom. I am mentally writing off the couple of stock I own (and 1 mutual fund) in this area for a while, but I am not selling them. I am not adding more long, I am hedging by buying airlines stocks (which correlate inversely to oil stocks) and airline mutual funds, and selectively shorting oil stocks, or trying to. I haven't written calls in a while, as I told Thean, because there's no premium in them. I would expect to resume this strategy in the fall, if we get some firming of call premiums. A recent poster mentioned a reasonable put strategy for GLM and MDCO (which can apply to any stock, BTW), and that also makes sense for downside protection. Sell these? No way. I won't take the loss now when in a few years, I'll laugh that I didn't buy more here (which I won't do, of course). Regards,