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: JGreg who wrote (2623)	10/31/1997 12:33:00 PM
From: Thean	Read Replies (2) of 95453

Greg, I don't follow PKD's too closely. As to their prospect, at this stage of the game, my impression is they have high trailing PE and debt (not 100% sure). To find out if the very shallow offshore is going to be the best niche, I think the keys are their number of rollover in the next 12 months and relative increase in dayrate in this niche versus others. Someone actually works in the industry may be better at answering these questions. As to <even though the "future" was with the deep drillers, the momentum was with jackups.>, I think what we see is the relative day-to-day volatility of the various drillers. This may have more to do with the number of float (tradable shares) than the segment they are in. The pure play in shallow jackup (CDG) has relatively thin float (even after split) and its price fluctuation reflects that. Deepwater DO tends to be less volatile due to its higher float. Another question to ask is how long you plan on holding PKD? If it is a year, I think there are other better prospects, just MO. If it is less than 1 month, then trade on pending news and short term valuation. If it is daytrade, just watch the screen!

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