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

To: SliderOnTheBlack who wrote (33609)	12/28/1998 1:00:00 PM
From: John Carpenter	Read Replies (1) \| Respond to of 95453

It's undeniable that LUKOY trading at $16 is extremely cheap on an asset/per barrel/replacement value basis. However, the shares, of what may be the world's largest oil company, have very little liquidity. There is no volume today. The political situation from an investment standpoint is deteriorating in Russia. Reforms are being rolled back. Increasingly, the communists are calling the shots. We've all learned this year that just because a stock is cheap doesn't give it a divine right to move up in price. In the momentum, Las Vegas, market of today, illiquid LUKOY is unlikely to catch the internet wave.

To: SliderOnTheBlack who wrote (33609)	12/28/1998 8:26:00 PM
From: Rob Shilling	Read Replies (1) \| Respond to of 95453

Slider, I am big on LUKOY. At 16 it is trading at 0.20X sales, and about 1/3 book value. It is still making money at these low oil prices. The Russian "instability" is very overblown. People that have "communist" labels are in power, but they are acting more like capitalists. Starting in 1999 tax rates are going lower for corporations. My theory is that if communism was going to take over Russia it would have happened this summer during the chaos of the devaluation and default. By the way, devaluation helps all commodity exporters in Russia. LUKOY is my number one stock. It is incredibly cheap for a vertically integrated oil. Basically it is an option on Russia. Also, if oil prices get back to reasonable levels then Russia will be on its way to recovery. Just like the media slams oil drillers without any analysis, the media has slammed Russian stocks. Russian stocks are the ultimate in undervaluedness. The whole Russian stock exchange market cap is less than 1/2 of Yahoo !!!