Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SargeK who wrote (39210)	3/8/1999 9:35:00 AM
From: marc chatman	Read Replies (1) \| Respond to of 95453

I owned UFAB for a period last year. It's a very good niche player and made a nice acquisition last year (Allen Tank). I think that's already benefiting the company (although I stopped tracking it closely). The only reason I don't own UFAB now is I don't like the thin volume. Buyers and sellers should, IMO, use careful limit orders -- bid/ask spreads are often 3/4 of a point, and sometimes more when the stock is on the move. A general comment regarding OPEC: it's fun, sometimes, to try to guess what will happen, but traders looking to make a quick buck off the meeting should be careful. I would be surprised if crude futures traders aren't spending small fortunes trying to uncover any leads in advance of the meeting. On the other hand, most of us only know what's in print. Sure, we can make educated guesses, but the odds are not in our favor. Not only would we have to guess the outcome of the meeting, but also the market reaction before, during and after. I haven't looked at options in the sector lately, but depending on the premiums, perhaps a straddle-type of play (on volatility) could work nicely. I'm currently long OS stocks -- pretty much my full allocation to the sector. But my time frame is such that the OPEC meeting will most likely be just a small blip on the charts by the time I sell -- if things go as I hope.