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

To: Razorbak who wrote (39906)	3/14/1999 2:23:00 PM
From: SliderOnTheBlack	Respond to of 95453

Fuller is doing what any CEO had better be doing here ! #1. Preparing for not only the current enviroment - but the next one that could be worse... any surprises to the upside - are just that; surprises ! #2. Talking down expectations... don't we want an end to these perpetual earnings downgrades ? - lets lower that bar ! How long would he have his job - if he spun on a dime and increased Cap Ex spending based on $15 Oil and these new cuts - and then OPEC cheats and Oil returns to $10-12 ? I don't think it will - and I love these lean & mean companies here. But, does anyone really expect any increases in Cap Ex budgets , or any change in policy from the Major Oils in the next 6 months ? This will be a good 'old fashioned - ''Show Me First'' attitude. Some Independants make take advantage of lower drilling costs here immediately, as that is often 1/2 of total project costs; and as such the small independants will be the first to immediately reap actual cash rewards here... I do expect stocks to move strongly from here; but to not have taken some profits either from trading, reducing positions, or selling and rotating, is not prudent imho. Prepare and be positioned with the use of stops to not turn a substantial run into a potential ''quintuple'' bottom <VBG> ! Mike is on a good track of who will benefit first and foremost... The major common sense reason for being optimistic here is - Why wouldn't the Street run these stocks back to levels of the past Sept to Jan rallys ? We certainly have higher Oil Prices and better expectations... Asia with each passing day - at least chronologically gets closer to an expected rebound... At the worst; it is no longer getting worse - it, indeed is getting better. However; the $64 question is how much better does it have to get untill we start to return to a business as normal atmosphere and not a bunker mentality in the Oilpatch... It won't be tomorrow, but that doesn't necessarilly mean we can't go to OSX 72 - 85 by the end of the summer... Time will tell - I know I've been paid for my efforts; have you <VBG> ?