To: KewlHand who wrote (803 ) 8/31/1998 3:58:00 PM From: jad Read Replies (1) | Respond to
Of the little green that can be seen on quote screen today, the upticks are concentrated in oil stocks and utilities. But, even in oil stocks, investors still need to be selective as not all oil related issues are trending higher. Still, given the beating these issues have taken for the past several months, analysts are starting to warm up to some of these issues, although investors probably could wait a while and still catch many of these issues at bargain basement prices. This morning, Bear Stearns turned positive on three oil exploration and drilling stocks which has allowed their stock prices to move higher. The Wall Street firm raised its rating on USX-Marathon Group (MRO 28 1/4 +11/16) and Kerr-McGee Corp. (KMG 41 3/16 +1 1/8) from "neutral" to "buy," while upgrading Atlantic Richfield Co. (ARC 61 +2 7/16) from "attractive" to "buy." In fact, Bear Stearns basis for its upgrade of ARC is due to its undervalued status, but this is probably through about the sector in general. However, with oil prices still very much depressed, and with no signs that Asia is going to get off the mat any time soon, the oil services group is likely to continue to experience a tough time ahead. This outlook is further complicated by the fact that Russia continues to unravel and without strong leadership at the top, matters in Russia will get worse, which means that the oil glut that exists is likely to get worse before long. Hence, while oil stocks are for the most part in positive territory and appear to be a bargain, it is too early to say that this is an area that investors should be in due to the unclear outlook from major oil producer Russia. BRIEFING
