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: Bob A Louie who wrote (2978)	11/14/1997 2:48:00 PM
From: Bob A Louie	Read Replies (1) of 95453

OOPS! Just found this. Sorry Freddy. BUSINESS INSIDER -- Wild Stock Prices Can Be Found in Lands Beyond Silicon Valley Also, can the old Eagle River finally get respect? Herb Greenberg Musings: -- High tech, high schmeck: Silicon Valley doesn't have a monopoly on stocks that may be out of whack with reality. Consider Jackson, Miss.-based Friede Goldman, which repairs, retrofits and builds offshore oil drilling rigs. It went public in July at $8.50 (adjusted for a split two months later) and closed yesterday at $45.38. That's 23 times its $2 book value and 46 times its expected 1998 earnings. By contrast, Singapore-based Keppel Fels, which is in the same business, trades at one time book value and 13 times this year's expected earnings. What's more, as a result of the Asian currency crisis, rigs built by Keppel Fels just became cheaper to anyone buying in dollars -- much cheaper than those build by Friede Goldman. ''I don't want to do business with guys whose costs are denominated in currencies that are falling,'' says one stock trader, who reaches the obvious conclusion: Either one of these companies is too expensive, one is too cheap or a little of both.

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