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

To: Crimson Ghost who wrote (27168)	8/5/1998 8:55:00 PM
From: Peter V	Respond to of 95453

Caution is warranted at this time George. I just stuck a toe in today, I wouldn't jump in with both feet until we get a clear reversal.

To: Crimson Ghost who wrote (27168)	8/5/1998 9:15:00 PM
From: Khalid R. Khan	Respond to of 95453

I.__In The Know: No one is in the know. Not insiders, not analysts, not the big boys and most certainly not us. The true impact of this prolonged crisis in crude oil price on company fundamentals will only become apparent in the next few months and it will be news to everyone concerned. Because of this uncertainty, the big boys are leaving this sector alone for the time being, that explains why this group keeps drifting downwards. Yes, on big rallies they do pick up SLB but that's about it - the bellwether offers less of a risk in an uncertain climate. And because of this uncertainty we find contradictions, such as, a company announcing it may buy back shares while the insiders rush to file Form 144 - preparing themselves to take whatever action that might become appropriate in the near future. Look for significant statements by oil services companies in the next few weeks: some will warn, others may reaffirm that they will meet earnings expectations; that's the point when winners will pull away from the losers. Believe me their will be quite a few earth shattering surprises when the news starts to flow out, past highflyers are not guaranteed winners. Buying now or for that matter holding any oil services stock at this point is a big gamble, the main reason why the big money won't touch this group at this moment. Yes, Iraq could start misbehaving but the threat of war alone should not be used as a rationale to keep holding this group. II.__As I posted last Saturday that I woul sell all my oil services stocks Monday at open, I did follow through and, in hindsight, that was a darn good move. Will get back in when the sector stabilizes and the technicals become enticing. Choosing a re-entry point simply based on price drop to a certain level is not the way to go. Fire away, I can take it.