Just received my ValueLine in today's mail.
Prices are as of 11/19/97, so their analysis does not reflect the full beating we have taken.
They are still very bullish on this sector, but note the sector is risky.
They cover 23 Cos in the Oilfield Services industry.
14 are ranked 1 for timliness (their highest ranking):
BJS, ESV, GLBL, GLM, HAL, NBR, NE, PKD, PGO, RDC, SII, TDW, VRC & WII.
5 are ranked 2 for timliness: BHI, CAM, HP, SLB & RIG.
Remainder are ranked 3 or less (or no rank): BRR, DAN, DI & WAI.
They have raised ther 3-5 year price projections on a number of them, notably, GLM to 50 - 80; BJS to 120-180; DAN to 19-30; HAL to 60-90; NBR to 55-85; PKD to 20-35; SLB to 105-130; RIG to 80-115.
Other tidbits:
GLM - The effective tax rate will probably be 28% in 1998, in lieu of our previous 35% estimate, because GLM plans to create an offshore, tax-sheltered subsidiary to include all non-U.S. assets. Earnings are expected to grow 20% in each of the next 3-5 years.
Mike |
