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: RGinPG who wrote (32353)	12/2/1998 12:36:00 PM
From: marc chatman	Respond to of 95453

I think it was the CEO of XON in an interview the other day who was asked about any plans to buy a service company, and I believe the answer was an emphatic "NO." I just don't see the advantages to buying a driller. The typical result is that the "in house" driller becomes less efficient due to a lack of competition; the integrated oil company can't really use outside drillers who may be more proficient and cost effective; in addition to being a slave to one commodity (oil), they become slave to a second (rigs) -- o.k., maybe rigs aren't exactly a commodity, but the laws of supply and demand work the same. I'm just looking at this from a common sense perspective and applying what I've seen in other businesses. Perhaps one of the oil industry guys here has a different perspective.

To: RGinPG who wrote (32353)	12/2/1998 1:14:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 95453

The real risk of bankruptcy for some is a good reason to buy only the strongest players when the technicals turn up. Charles Maxwell has a big following and when he talks about $8 oil a lot of institutions will believe him. BTW, I really do believe this is the final shakeout. But absent some dramatic moves to hike oil prices, I look for just a modest rally once the lows are in followed by an extended base building period. Moves coming off a major base are much more reliable than V bottoms. Experience shows that sharp rallies off V bottoms in this sector are extremely risky to chase.