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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: chowder who wrote (71011)8/16/2000 1:27:05 PM
From: kollmhn  Read Replies (2) of 95453
 
dabum
SSB put out a new report today, on OII. Long and short is that they site the following:
OII trades at a significant disc to mar. constr. companies like GLBL and HOFF due to the "lumpiness" of the MOPS demand, timing uncertainty (revenues) from their other segments and earnings leverage dilution for Ad Tec. A discount is warranted, however, the co's current earnings growth profile compares favorably with its comparables and the apparent earnings power suggests significant stock appreciation in the next 12-18 months. Target $28. We note that improved earnings visibility in the coming months could strengthened this opinion.
Current (just revised down) estimates are for OII to earn $.65 this FY ended 3/31/01 and $1.35 for 2001.
Correspondingly, GLBL is estimated to earn ($.10) and $.55.
It strikes me that if OII is going to remain profitable and out earn GLBL next year by a factor of nearly 3 to 1, , and has a book value twice that of GLBL, that OII ought to be worth twice that of GLBL, IMO.
It seems the entire sector continues to suffer from delayed project awards. No meaningful pick up is expected for OII, GLBL, etc. until 2001.

Is it still too early to own any of them?
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