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

To: marc chatman who wrote (34531)	1/8/1999 12:10:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

marc, Good point is never to invest in companies with lots of debt- their ability to manuveur financially is seriously circumscribed. One of my iron clad investment rules is only to buy companies that are in the upper half of their sector in terms of the relative debt load that they are carrying. But yes, we have taken write offs on two, three oil fields this year since wall street did not expect great earnings from us anyway. So what the heck throw all the junk, bad news into your 1998 balance sheet, so that in 1999 the ROFA on these assets will automatically jump even if oil prices never go up! Ahh those durned financial accountants! Point being when reviewing OS stocks look at companies with lower than average debt, and then check the back of their SEC 10K and 10Q statements. See if they have taken writeoffs/writedowns on current assets of any sort so that those assets by definition will perform better in 1999. Smart CEO's of OS companies should be doing that right now....And I bet some are. Let me go peruse some 10K's and 10Q's here... Sincerely, Doug F.