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

To: SliderOnTheBlack who wrote (26812)	7/31/1998 1:50:00 PM
From: Big Dog	Read Replies (5) \| Respond to of 95453

Slide -- I agree that PDE is attractive. I called it a "sleeper" a few months ago. But again, I think you are buying these stocks for the wrong reasons. Do you realize that jackup day rates in the Gulf of Mexico are about one third what they were just a few months ago -- and getting worse. That means if a rig was making 60,000 a day it may roll over to a contract at about 20,000. Slash 40,000 a day from the earnings per rig and do the math. This is why I think there may still be downside in non-deepwater drillers. One more bad news item for shallow drilling -- gas prices are today at 1.87 -- folks this is trending down much too much. A couple of months ago the ga price was around 2.40. Big drop! You have done a good job going over the companies, but I still say they must only be bought when oil prices improve. Otherwise, they are dead money at best. And yes, their day will come -- something will almost positively occur that will raise oil prices over the next 6-12 months. On that day, you will have made the right buys. You asked about buys? I bought VRC at 16 today from proceeds of CDG amd MDCO. big jump.to