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Politics : High Tolerance Plasticity

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To: Sharp_End_Of_Drill who wrote (626)	2/28/2001 9:34:34 PM
From: kollmhn	Read Replies (2) of 23153

Sharp- I can't comment on the other names but because I own a slug of NBR I'd like to offer a heads up. Your .47 debt/equity ratio for NBR, while accurate for the Dec.31 date, is not really reflective of its situation. NBR has about 300MM in regular LT debt. It also has about 500mm of zero coupon cvt debt with a cost of money at 2 1/2% per annum. Those proceeds are being held in cash investments, at a positive carry. Additionally, on Jan 31, '01 they borrowed another $1.15 billion (at 2 1/2%) with proceeds of $700mm. This is also being held as cash investments, as well. Obviously this latest borrowing increased the debt/equity ratio again. However, net of cash on hand (about $1.2 billion) NBR's debt/equity ration is actually under .20, thus moving it well up your list. The devil is in the details and that's why one always needs to really look beyond the numbers that "screens" offer. As for GW, I think the interest is (1) it's in the hot U.S.landrilling sector, (2) it;s a low priced (not cheap)stock and (3) it's 20% off its high in two weeks. $5 is a good buy point, in my opinion.

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