Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: SliderOnTheBlack who wrote (65021)	4/19/2000 7:43:00 PM
From: upanddown	Read Replies (1) of 95453

Risk does matter Slider, I couldn't agree more. The shallow guys may soar and MDR may languish for now but I just think in the long run the higher risk is with the higher valuations. I would rather be patient than try to out-guess the market. I mean does MDR even without B&W really deserve to sell at a small fraction of the value of much smaller companies? Gosh, the two non-JRM/non-B&W divisions have $1B sales and $1.6B backlog. With B&W net assets carried on MDR books as an investment while B&W is under court protection, the value of MDR cash and investments could be well in excess of market cap. I guess we will find out next week. I'am playing it with long stock and lots of short puts, all 10's in May/Aug/Nov. My breakeven is mid-7's so I think it is really a very conservative play. Gives me time for the construction cycle to kick in. The MDR jump was close to 20% since Monday. The reaction could have been slowed by the fact that there was absolutely no publicity about the court ruling and was dug out of an obscure legal database by a YAHOO poster. MDR does PR like JL, there isn't any. It was also a confusing court ruling. I don't really understand it but it appears that the rest of MDR is safe. I think it has more to go as investors understand that MDR won in court. We shall see. John

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