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: Lost1 who wrote (1930)	10/9/1997 7:35:00 PM
From: Big Dog	of 95453

FGII overpriced? In relation to what? Is there another shipyard that builds offshore drilling rigs that you are comparing it to? Is there another company that owns the engineering and design rights to 30% of the semisubmersible in the world and 10% of the jackups? Is there another company that was just GIVEN two world-class shipyards? The answer to the above is a soild NO. There is no other company like FGII that is traded in the US stock market -- or in the world for that matter. FGII is a PURE play on offshore drilling rig capital equipment markets. The earlier poster that talked about the analysts not understanding the offshore rig business is exactly right. They are going to be amazed at the money these companies are making. They do not understand inelastic demand. I have sold over a billion dollars worth of offshore drilling rigs. I know the kind of money that is at stake here. I know the market. I know the people that buy rigs and I know FGII. You can argue the technical numbers all day long -- I don't know much about that. All I know is that FGII is a money machine like none other I have ever known. So is it overpriced? Maybe I need a definition of what "overpriced" means. This is a great board for exchange of information. I thank Michael Berka for pointing me to it. I am an active trader and make 5-10 trades per day. But I AM NOT trading FGII. It will move up too fast. My other favorites are (for those interested) are: 1) Mitcham Ind. MIND A sleeper that I bought in 1995 for 4.25. This company is in a great business where it is the market leader. You could say Mitcham invented the seismic channel box rental business. Earnings from this company do not disapoint. Volume of late has been much higher than average as I expect mutual funds are snagging this great little company with a small float. 2) Grey Wolf GW The 2nd largest land driller. Land drillers such as GW will be making great gains as soon as the "analysts" catch wind that land day rates are getting higher every day. A $500 increase in day rates equals 7 cents EPS for GW. This low priced stock ($9.62) has a lot of upside. Others I like are CXIPY, NSS, TTXG, GGY and BHI (BHI is up only 16 points off its 52-week low -- quite a laggard in this group for a brand name oil biz company). If anyone has questions about the offshore industry I will be glad to try and answer. Also, if any of you are serious about following the industry I can arrange for you to get a free sample of the industry standard trade newsletter -- The Gulf of Mexico Report. It is a weekly and does not deal with stocks, but will keep you aware of what is going on in the business. Annual subscription price is $150. I originated this newsletter in 1986, but have nothing to do with it now. If you want a free sample by snail mail only, send your name and mailing address to me at mike@ktc.com and I will get a recent copy sent to you. Good luck to all! mike simmons president loosbrock offshore

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