Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: RFH who wrote (5014)	7/12/1998 6:58:00 AM
From: Jim Battaglia	Read Replies (1) \| Respond to of 18928

Not a bad idea Robert, as you can see the OIL index is very volatile but should play well with AIM. In my BUY LOW SELL HIGH page I have reported a few buys in early January in the Energy Group as a whole. You will also see some nice turns in the other sector also if you view the charts. Check this chart in the Oil sector to view the ups and downs... espin.net Have a great weekend Jim investnbest.netmegs.com

To: RFH who wrote (5014)	7/12/1998 8:06:00 AM
From: JZGalt	Read Replies (1) \| Respond to of 18928

I plan on upping my cash closer to the 45% level on this one. This is totally unscientific, but the reason I set the initial cash level so low (25%) was that I believe the sector is closer to the bottom than the top and we were selecting companies that for the most part have earnings that won't be severely effected by the drop in oil prices. The sector as a whole is clearly in a bearish pattern and I wanted the cash level to go near zero toward the late summer as the oil service industry bottoms out (fingers crossed). You might want to take a look at this link if you are making the initial investments in the area. securitytrader.com I strongly suggest that you go to the home page and read how this graph is constructed and why you should consider buying sectors when they are near the bottom and turn up vs. chasing the high flying groups. This is a very nice site providing a wealth of information on most sectors and also individual stocks. If you go to the "Strictly Drilling" thread on SI and sift through all the day to day noise (and moaning) there are some really good posts over there on the industry and the prospects. The two trends that are coming thru right now are: 1. Stocks that service the oil drilling industry, but are not directly subject to the day rates on drilling. In other words, buy stocks that provide services to the rigs which will continue to drill to provide hard currency for the emerging markets as well as OPEC members. 4 out of the 5 stock selections of the AIM portfolio we set up would not be impacted directly by a decrease in the dayrates. 2. Stocks that have assets operating in very deep water are less vulnerable to decreases in dayrates vs. those who drill in shallow water and those that drill on land. In other words there are only a few players in the very deep area and the demand still exceeds the supply there. Transocean Offshore is the 5th stock in the AIM portfolio and the bluest of the blue chips in the deepest water drilling area. Now since we have selected the "safest" place to be in the battered group, I selected the 25% cash level. It remains to be seen if I am correct. I apologize for going on about this industry, but I think it is important to know the reasoning behind setting the initial cash levels below the "typical" values. ---- Dave