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: SliderOnTheBlack who wrote (31538)	11/6/1998 12:48:00 AM
From: articwarrior	Respond to of 95453

You have a point Slider in that alternative ways to invest do exist. I recommend that everyone sell their oil service sector stocks and wait patiently for the wheels to turn in the opposite direction. Meanwhile I think I'll wait patiently with a SHORTNESS of breath while this happens. Out on a limb and calling the next two weeks slider I would say that. 1. The market corrects because Uncle Sam ain't cutting rates 2. Russia will print mucho bills devaluing their currency further and making their financial crisis much worse. 3. Japanese tax reforms will be put on hold 4. OPEC this time will only rub 3rd world noses in fact that they are losing much dinero on not controlling oil production very well and this will by the 2nd quarter of 1999 cause a great run up in the OSX. 5. Iraq suffers the loss of their leader in a terrible accident and oil guess what...Goes down! 6. La Nina turns out to be just a normal winter. Want to have a shot at it slider and we'll compare notes in a week then again by 2nd QTR 1999? Let's say it is Mr Supply and Demand vs Heart of Black Gold Country! I'd say my conjecture is a good one. Number 5. is more a hope for peace in the world than anything else.

To: SliderOnTheBlack who wrote (31538)	11/6/1998 9:15:00 AM
From: RGinPG	Read Replies (2) \| Respond to of 95453

The sector is only undervalued if the price of oil recovers (which I believe it will eventually). It is certainly not undervalued if you look at P/E's, projected P/E's, earnings growth numbers, and you take into account how volatile and unpredictable the earnings are in the sector (the market gives a premium for stable and predictable earnings, and discounts stocks with unpredictable earnings). The fact that the market has had a great run the last week or so while the OSX has languished at the same level can also be construed as bearish. Personally, if we get a small move up today, I will short some more. Always with the plan to buy back in 5 to 10 days from now. If the downcycle takes us close to previous lows, I may break my vow and buy on margin, because I do believe the price of oil will recover, along with the earnings for these companies. osxstocks.com