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: Gary Burton who wrote (44675)	5/13/1999 12:39:00 PM
From: IndioBlues	Respond to of 95453

Fahnestock & Co. reiterates "Buy" on CRK <cool> Princeton, New Jersey, May 12 (Bloomberg Data) -- Comstock Resources Inc. (CRK US) was reiterated ''buy'' by analyst Fadel Gheit at Fahnestock & Co. The 12-month target price is $10.00 per share.

To: Gary Burton who wrote (44675)	5/13/1999 2:38:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

GaryB; in your opinion - technically speaking - Does today move up; change the prognosis from say, where we were Monday ? In other words, if monday/tuesday it looked as if we were going to do a slow bleed to say 63-68; but now we see buying support very broadly based; and especially I see strong institutional buying on substantial individual stock dips - like we saw on CRK & RRC here - literally 10-20% one/two day turnarounds, from down -10% to up + 10%. Does this ''type'' of buying change your thoughts here ? Do you see us breaking out to 85ish before retracing here, or do we turn down right here ? - and what looks to be support ? From what I was seeing, I felt a slow bleed, not from any type of panic selling - but just an imbalance of people taking profits - cutting any losses here vs. the number of buyers willing to step in at these price levels. However; the buying I saw on key stocks yesterday and today - has told me that there are institutions who are still buyers here. The Saudi comments on wanting $20 Brent propped us right back up. I guess this is good and bad news; as we do not really have any major events here - like an OPEC meeting, earnings releases etc. to really support us strongly, or to boost us higher. We also do not yet have any fundamental news like rising rig counts, higher dayrates, a flow of new orders etc. to keep us moving , or supported here. The minute this news ends - I can see a slow bleed off here. But, it does seem that the Saudi's are doing a damn good PR job here and they seem to be serious about these prices. I just don't know how the other players like Quatar & Venezeula will hold the line. Given present fundamentals in the OSX - rig utilization, dayrates & earnings; the Ball is entirelly in OPEC's court here. Their PR and compliance here holds the key to where the OSX goes. I feel somewhat uneasy - given it is all about the expectations of $18+ crude Oil sustainability; and that sustainability depends entirelly on OPEC compliance above 80% here... I would much rather see fundamentals being acknowledged as turning here.... hopefully we can tread water here for 2-3 more months ??? The downside story as I see it; is this scenario: It's a given that OPEC is at 80-85% overall compliance here today; but then if Venezeula falls to say 70% - they really aren't blatant ''cheaters'' and can politically spin to a degree their small transgression. This 5-10% move is big $, then maybe just 1-2 other countries decide to weasel out another 5-10%; then the next month that 5-10% becomes 10-20% and then OPEC is at 65% compliance.... I think the Street will look to take profits on Crude Oil and the OSX on any break of 80% OPEC compliance and the ''true'' Bears will really trumpet this news. But in the long run; I still think that even with 50-60% compliance to these new cuts (still more than last years cuts !) along with growing Global demand; we will ultimately sustain $18-20 Oil.... No reason for buy & holders to panic; but volatility still seems very likely here. Will The Saudi's PR be enough to keep us moving here, given yet poor fundamentals ? I am praying that we see a 10+ Rig count jump this week, or next ! - that is exactly what we need here - something fundamental to hang our hat on !