DRILLERS & IOM
fool.com (CONF CALL)
NE is the best ( the only one i own ). Just beat estimates, earnings projected to double
next year, trailing PE is 19. They have 4 converted rigs coming on line and one going off,
will add about $180,000 per day in revenue. Day rates have gone way up and will
continue to go for at least 3 years (world wide shortage of deep water rigs, you know the
story).
Here's a few examples of actual signed contracts (of many for this company) from the
list NE faxed me yesterday:
MLT Class 82-SD-C, present contract for $24 -26 thousand per day expires 12/97:
Extended @ $65-68 thousand/day.
F&G L-780 MOD II-IC, present contract $5-10 expires 10/97: Contracted @ $60-62 for
Q198.
I have no plans to sell this stock anytime soon.
The next best driller is Globle Marine
GLM is a really strong company that has plenty of up side. It was the stock of the day
recently:
fnews.yahoo.com
HAL, SLB, CDG, and KEG could also be good long term, but they might be a little a
head of themselves (i wouldn't short any of them, even on profit taking days they only go
down a little and then continue their upward trend).
An industry related company that might double in 3 or 4 months (i'm don't know too
much about it so you need to really look into it) is ECGOF:
techstocks.com
It pulled back to $12.5 and it looks like it is ready for its next run. |
