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

To: A. Geiche who wrote (37127)	2/9/1999 2:41:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 95453

Bearish article from S & P. MARKET SNAPSHOT •MarketMovers •Word on the Street •S&P's Stock Picks and Pans •MarketViews •The Outlook's Market Insight •Technical Market Insight WORLD EQUITY WATCH TREASURY MARKET WATCH CURRENCY MARKET WATCH COMMODITY MARKETS WATCH Markets (01:43 to NY close) S&P 500 -16.98 DJIA -91.14 NASDAQ -56.09 30-yr Bond -0.03 More... Quotes/ Research Real-time Quote Delayed Quote Company/Fund Profile Company/Fund News Enter name or ticker MARKETS : MARKET SNAPSHOT Tuesday February 09, 1999 (08:00 am ET) S&P Sees Further Weakness for Drilling, Oilfield Services Firms NEW YORK, Feb. 09 (Standard & Poor's) - With the U.S. drilling rig count at an all-time low, we see continued weakness for shares of drilling companies and oilfield service providers. The U.S. rig count was 558 last week, down 44% from a year ago and the lowest since Baker Hughes began tracking rig count in 1944, and international rig counts are falling as well. With worldwide exploration spending set to fall 25%-plus in 1999, we don't see a significant rebound in oilfield activity on the horizon. The Gulf of Mexico is now the weakest offshore drilling market, but we expect rapid deterioration of utilization rates and dayrates in the North Sea over the next few weeks. We believe the industry will be forced to consolidate to survive, which should results in some deals later in the year. Consensus EPS estimates do not yet reflect the worst-case scenario, which would result in losses for many drillers. It is this threat of further operating downside that leads us to ignore seemingly attractive prices for many stocks in the industry. We reiterate our (sell) opinions on Baker Hughes (BHI), ENSCO International (ESV), McDermott International (MDR), and Rowan Cos (RDC).