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.

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

To: Big Dog who wrote (28617)	8/31/1998 9:18:00 AM
From: MARK BARGER	Respond to of 95453

FGII looking to gap up in premarket manuevering. INCA (representing mainly institutions) is all over the bid. Could this be the first sign of nibbling by the institutions starting. CNBC has a nice plug on the oil service sector this a.m., an analyst with Bear Stearns was predicting areturn to $18 oil by 1999, with the guest host also agreeing with the analysts assessment, we'll see. Anyhow looks like we may see a bounce today. Mark

To: Big Dog who wrote (28617)	8/31/1998 9:43:00 AM
From: SliderOnTheBlack	Respond to of 95453

CNBC reports Bear Stearns analyst (not an oil bull) issuing new buys... and says ''one can now buy Oil on Wall Street cheaper than drilling for it... this can not be sustained...Oil will go to $18 soon...'' It is nice to see a non Oil Bull analyst - recognize the reality here. The very cause here (over supply) will lead to the cure (reduced production)... OPEC's cut numbers have a large lag time to being reported - this is why they are delaying further action - We are now at a crisis point for them. Irregardless of the degree that they institute further cuts- Oil has stabilized. At present prices - there is no reason for these stocks to go lower or for crude to go lower; they have both bottomed. If crude is the proxy for these stock prices and if crude has bottomed - why haven't these stocks bottomed as well ? It amazes me - that everyone acknowledges Crude has bottomed, everyone acknowledges that crude prices are the proxy for oilpatch stock prices - so why hasn't the case been made for an oilpatch bottom ? We are oversold; from a classic commodity perspective - the reduced demand problem is being cured by lower production due to lower prices - this is a self correcting-return to equilibrium scenario here... Hopefully; Wall Street will step in here off of Bear Sterns upgrade...