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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 (28296)	8/25/1998 2:12:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

marc; CXIPY....dumping understandably; you and others are initially reacting - ''that someone must know something'' - good reaction, better to be skeptical/defensive in this atmosphere... it is exactly what my initial reaction to IO was today.... BUT; there are a couple of energy sector mutual funds and 1 large hedge fund that are having strong redemption runs - they need to raise CASH & are dumping a few stocks at ''any'' price... Some of them held major positions in these companies and when other funds see this dumping they often follow the leader - in IO's case - they reported earnings weakness and got blitzed.... CXIPY is a notch above IO imho; I'm playing IO for a bounce and it is a great company with strong financial strength - NO DEBT - hence I'm not worried if I get caught here. I would NOT be trading a high debt company here like this... CXIPY is a cash machine in ultra deep water with a proprietary product to an extent and a very high barrier to the entry of competition - this is today along with SCSWF - who have been unaffected by this selloff (another bottom indicator) are the 2 BEST BUYS - imho. CXIPY..we are perhaps seeing a pre-emptive strike selloff; in case CXIPY reports and misses estimates - I do not care at these prices, its still a gift... if they do hit - I get an immediate trade - probably a bounce of $3-4 back - I cover - keep a few share long term and go to the next one - same with IO... This is guerilla warfare in the oilpatch - I'm ''getting well'' by revenge upon these funds when they are NOW puking & capitulating ! - I'm buying after the individual investors ''squeezed'' them for cash redemptions - poetic justice after the short sellers and funds dumping - ''squeezed'' us in June/July - now if we are quick and keep some cash we can take advantage of them - for a change ! 1. keep some cash 40% for trades & dips 2. be selective - trade/buy low debt financially sound niche co's 3. hit & run 4. do your damn homework ie: E&P companies are gearing up nat gas & some crude projects - BDI is buying Rigs bigtime, more than a few Oil Co's have increased borrowing to increase E&P projects - there is a time-delay here - we will se good rebounds in Rig count in a couple of months - be patient - our biggest problem is the ''instant gratification'' desire by investors - this is another opportunity to take advantage of ! 5. be patient