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

To: John Carpenter who wrote (36316)	1/30/1999 1:07:00 PM
From: John Carpenter	Read Replies (1) \| Respond to of 95453

RIG and SLB are still trading at their March 1996 price levels and fundamentals are a hell of a lot worse now then they were then. If we go back to 1995 RIG was at a split adjusted $10, while SLB had just finished its 6 year trading range dead money cycle from $25 to $30. In today's enviornment, one can make a serious argument that SLB and RIG are still significantly overvalued because while the companies are in better financial shape, there's nothing on the horizon to get us out of $12 oil, while the major oils are on a major campaign to cut exploration. The oil-service estimate cuts have been brutal and should get worse.