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: William JH who wrote (75904)	10/10/2000 11:41:22 AM
From: ItsAllCyclical	Read Replies (3) of 95453

>> company that produces tubulars for the water and energy sectors warned << I have not seen a thing, but maybe this is what you were looking at. Seem very specific to GRP. Your wording seems very careless unless you can back it up with a link. I think the recent weakness in NSS and MVK is a buying op. I doubled my positions in both and still have cash and margin available for the near term buying ops. --------------------------------------------------- cnetinvestor.com GRP -Grant Prideco, $21 7/16 Rated 1H3 FY00 $0.19E vs. $(0.33) First Call consensus $0.19 Michael W. Rabalais 404.266.6144 We are reducing our third quarter estimate by one cent to $0.07 and our fourth quarter estimate by two cents to $0.13. Our 2000 estimate is reduced from $0.22 to $0.19, and our 2001 estimate is unchanged at $1.00. This points us in line with consensus estimates. Our recovery forecast remains $1.75. We now expect drill pipe footage to total about 1.2 million feet in the third quarter, up 22% from the 980,000 feet shipped in the second quarter, but below our previous estimate of 1.6 million feet. We also reduced our fourth quarter footage estimate from 2.2 million to 1.7 million feet. The shortfall in both quarters is principally due to delays in consolidating manufacturing capacity. A shift in product mix has resulted in slightly lower revenues per foot. We now forecast the price per foot to average $31.20 in the third quarter and $32.00 per foot in the fourth quarter. Our old forecast assumed $32.50 and $33.00, respectively. GRP is also behind in consolidating its manufacturing facilities. Both of these issues should be resolved shortly. A price increase is imminent (early October), and the Navasota plant should be fully operational by December. We think the investment thesis for GRP remains intact and strongly reiterate our Buy (1H) rating and 12 month target of $32.00. See our note entitled "GRP - Reducing Third and Fourth Quarter Estimates, Reiterate Buy Rating" for more detail on our investment thesis for the stock.

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