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

To: Grommit who wrote (30757)	10/15/1998 11:28:00 PM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Grommit; one has to ''think outside the box'' on this issue ! ie: Cramer. I respectfully, strongly disagree with this statement: <<No change in oil today, so the increase is a gift. Stare at the graph before putting in any stock purchase orders.>> ...First of all; in this Internationally Chaotic Market - Trust Me; -- There are no ''gifts'' - the increases are gotten the old fashioned way; - they are earned ! Grommitt, this is the initial reaction that most people will have; this is what made Cramer's call on the Fed Cut leading the ''pop'' - so good ! Elementary folks; a Fed Rate Cut directly and immediately addresses the #1 problem in the Oilpatch - Crude Prices. Crude Prices #1 problem is ''Demand.'' The #1 catalyst to higher Crude prices has to be stronger demand. A Fed Rate Cut stimulates demand by adding liquidity. Today is an opportunity to buy low and to sell high - when this Rate Cut pushes demand and ultimately drives crude prices higher - which we know will move the oilpatch stocks higher - (so Teddy can buy FGII @ $30 when Crude is $18 ) Those who were savy enough to buy off the first Fed Cut -knowing others were to follow ( and more yet to come...) or off of todays Fed Cut; are ''Beating the Crowd to The Party !'' Buying here - very cheaply; before Crude prices are at $17-18 is ''the play'' as when crude oil is at $18 - FGII will not be available at $10 etc... (the Teddy factor !). Why are so many people thinking we can have it ''both ways'' ? ie: high crude prices and low stock prices ? - can't & won't happen. One has to be ahead of the curve here... What Cramer so brilliantly (actually common sense) suggested was knowing that the Fed was going to Cut and more than likely, cut again... ''Buy on the Rate Cut'' - as you will get to buy cheap - at the very moment that ''DEMAND" is being stimulated - which is solving the big problem (low Crude Prices) in the patch. Opec is doing well helping with supply and The Fed just moved in a big way to solve ''demand.'' ...waiting untill Crude is at $18 - is conservative, but then you will have to choose from FGII @ $24-30; RIG & RON @ $50 etc... We will not be able to buy these stocks Low when Crude Oil is High ! Buying here, when we see evidence that demand is being stimulated (finally) is ''the play'' ....either learn; or buy high ! This is the time - right now ! - these stocks aren't turning on a dime here; they're not going to their 52 week highs in 3 months. But, the tide is turning. Be here now; or miss one of the great opportunities of the decade imho. "The Slider" has spoken.... Teddy - did you learn anything at school today ? <VBG>