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

To: Platter who wrote (35004)	1/13/1999 1:40:00 PM
From: Crimson Ghost	Respond to of 95453

Platter: T That article is about as negative as you can get. A few OS stocks (FLC ESV) have staged decent rebounds from their lows, but overall OSX action is poor. Recently down 4.75% -- just slightly above the low -- while NASDAQ is now up a bit after plunging 5% in early trading. If we do not rally by the close, tomorrow could be another big downer.

To: Platter who wrote (35004)	1/13/1999 1:47:00 PM
From: Mike from La.	Read Replies (1) \| Respond to of 95453

Would appreciate any opinion as to an oil and gas producer I'm looking at. I'm building up my core holdings, with a longer term prospective. I've been going over the bunch for a while and have settled on Kerr-McGee. It is getting ready to merge with Oryx, which will make it the fourth largest independent. The combination will give it a strong presence in the Gulf, and especially in deep water. It is also strong in gas over oil. What makes it stand out is it is trading at a PE of 5.5, compare the the often recommended Burlington Resources at a PE of 51, and the more typical PE for larger producers of around 20. It pays a dividend of almost 4.5% annual. The dividend is in no danger, it's just that the price has been knocked down so far that the dividend is up relative to the price. The fit with Oryx should be very good, and KMG is diversified enough to give some cushion. Oryx has been doing very well in deep water for such a small company. They've developed some type of floating spar platform which is working out well, considerably lowering costs, and they have been selling a lot of their land interests. Right now, the only type of company I'd consider is one with a strong deep water presence. It looks to me like a real good buy and hold. It pays a nice price for waiting. Any thoughts? Mike from La.