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Gold/Mining/Energy : UFAB - oil drilling deck fabrication
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To: soozathelooza who wrote (5)9/20/1997 10:14:00 AM
From: Michael Berkel   of 337
 
Compare the price of GIFI (Gulf Island Fabrication). A marine and offshore oil platform construction company. They will earn US$1.92 this year and their stockprice is US$ 47 1/2. P/e=23.67 according to Yahoo Quote. According to StockSmart average multiple earnings for this sector is 24.2.
UFAB has earned $1.02 or will earn $1.02 in 1997?...and how much next year?
Is there any forward looking statement in their prospectus?
As long as we don't know how much the '98 estimate is, it is very hard to give a proper valuation.
And the other thing that is worrisome is the drop in earnings from $1.84 in 1996 to $1.02 in 1997. Why this drop?

At first look, it seems to me that at the recent price of US$32 (closing price Friday) the stock is fairly valued, unless someone
here knows from their prospectus or from other reliable sources that there is enough reason to think that they will come up with some blow out earnings next year.

Is it fair to compare UFAB with FGII? Are both companies in the same league? FGII is into the repair business, which might be a different
success story, and therefore deserves a much higher valuation.

Please read the last postings in "Strictly" and let's discuss the
valuations here.

Every contribution is appreciated.

Michael Berkel

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