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

To: SliderOnTheBlack who wrote (28566)	8/29/1998 12:10:00 AM
From: Elmer	Read Replies (2) \| Respond to of 95453

IMHO, next week will be a good week for OS stocks: (1) Offshore Data Services reported late Friday that the GOM offshore rig count rose an unexpected 6 rigs last week bringing utilization up to 83.3% from 80.3% last week. (2) Also, on late Friday, BHI reported the rig count in the U.S. increased by 19 rigs. (3) We have had two very good petroleum inventory reports the last two weeks and if we have another one on Tuesday, people will start to realize we are actually doing a good job working down the inventory overhang. (4) August OPEC data should show improved OPEC compliance. (5) Traders will realize that the possibility of Russia exporting more oil is very remote. (6) There is evidence that rig and service prices have bottomed because many producers are now locking up idle rigs to take advantage of the lower costs and to meet their production goals. (7) Everyone and their brother has now reduced estimates to very conservative levels. (8) The shareholder base in OS stocks should now be more heavily in the hands of longer-term oriented value investors. (9) On any parameter possible, valuations are compelling. (10) Slider is going to go on CNBC and tell everybody about the once-in-a-lifetime opportunity available for OS investors. Have a Good Weekend Everybody, Elmer

To: SliderOnTheBlack who wrote (28566)	8/29/1998 12:20:00 AM
From: Douglas V. Fant	Respond to of 95453

Slider, Buy oilfield service companies first- oil producing companies have a bit of retracement still to do IMO since gas prices and refining margins slipped a bit over the last 60 days BUT- take note of the following language in a letter I received today as a shareholder of AMP. AMP received a surprise takeover offer from Allied Signal about two weeks ago: "...Allied Signal has launched its offer at a time when AMP's business, like those of other companies similarly situated, was under pressure from a significant but ultimately temporary, economic downturn in the Asia/Pacific region and, accordingly when AMP's stock price was near the low point of the past twelve years. By launching its offer now, Allied Signal is also seeking to move hurriedly before the positive impact of our fully designated profit improvement program, which was recently put inplace, can even begin to be felt. Although Allied Signal is touting its offer as a "premium" to AMP's pre-offer market price, the "market" is temporarily depressed and, in reality, Allied Signal's tactic is designed to acquire AMP on the cheap". Whew! Although this acquistion attempt is occurring in the electronics arena, how long before we read similar language related to oilfield service companies? Sincerely, Doug F.

To: SliderOnTheBlack who wrote (28566)	8/31/1998 9:28:00 AM
From: SargeK	Read Replies (1) \| Respond to of 95453

<- Previous Message 2398 of 2398ÿÿÿÿ Reply ÿÿÿÿÿ OSX closed Friday @ 53.03SargeK Aug 31 1998 9:23AM EDTI expect the OSX to close up this week (week over week) and while the low may be tested and maybe go lower at some point in September, I fully expect to see the sector reverse and close out the month higher than it started. The significant decline in the small-mid cap stocks in general and the crash in this sector in particular has created what I believe to be excellent buying opportunities for those with the patience and determination to look beyond current circumstances. In six months to 2 or 3 years from now, investors will be looking back and wonder why they didn't buy in at these levels. Those who have sold out will be kicking their own butts for missing the opportunity. A confluence of frightening news accompanied by tax selling, short selling, margin calls, Stop-Loss sells and overall negative sentiment have combined to generate increased fear of further capital loss - short term. This will eventually play out. It always does. On a fundamental "value" basis I know of no sector with the potential of intermediate and long term capital gains as the OSX. THEY are grossly oversold for all the reasons mentioned above. Your questions: 1. "Is it time to get in yet or will FGII go lower?" To the first part - YES. To the second part - that is always a possibility. Depending on your own long term objective, you may want to decide how much money you can afford to risk and how long you can afford to risk it. For example, if your objective is too own 2k shares of FGII. You can buy 500 shares initially at current price, an additional 500 if it goes into single digits, reserving half your cash to jump in when there is firm evidence in a sustained change in trend in the entire sector. My preference and you might consider this (if you have the time and focus) would be to use 1/2 the remaining cash (1/4 the total investment) to buy on dips and sell on upticks. This often cushions the impact of an intermediate term decline and adds to capital reservers for the eventual turn around. You will know rather quickly if the trades meet with success or not. It is a tricky game and one must act quickly to win. If results are poor, STOP doing it. The sector will be up this morning and might be an appropriate time to test yourself by buying 500 shares and see what happens. I will attempt to answer further questions as they occur. Good luck to all, K ÿFGII:ÿ Quote ÿ\|ÿ Profile ÿ\|ÿResearch This Is a Reply to: Msg 2393 by dojim1