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: MARK BARGER who wrote (1852)	10/7/1997 3:58:00 PM
From: Michael Berkel	of 95453

Mark, owning a 60 PE stock such as FGII today might look scary at first sight, but not if you think of it as the fastest growing stock in this sector, as set out in Barron's article and explained by rig broker and consultant Mike Simmons. Tozzi said in the Barron's interview that FGII is growing at a 150% growth rate and Simmons expect them to announce a new multi-rig order any day now. In other words: the stock that you consider a 60PE stock today might be a 20PE stock in the very nearby future. Compare FGII with software stocks like BAANF which are easily selling at 100-150x earnings, purely based on growth rate. I wouldn't be surprised if the stocks of the drillers & oilfield related companies are going to be sold at extended p/e's, once it is proven that their earnings beat expectations also this time around. Happy trading! Michael Berkel

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