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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Lucretius who wrote (6398)1/1/1998 12:44:00 PM
From: A. Fineigler  Read Replies (1) of 95453
 
All: Views on low-risk oil stocks and SDC ?

Doing a screening based on 1) debt, 2) PE, and 3) Market Cap, then following up with some fundamental research, SDC came out as the proverbial screaming buy. I'm looking for low-risk, high-return within the drilling/exploration/oil-services sectors - willing to sacrifice some potential return for low-risk. So highly leveraged companies don't look attractive.

SDC has no debt, low PE against sector, decent market cap (i.e. not too small), and strong business in the high-demand deep-sea drilling niche. Also very conservative management and strong cash-flow. This seems to indicate a company that can withstand the inevitable downdrafts that come and prosper when things are good. The lack of debt also positions them to move quickly if they see an oportunity to grow by buying.

But ... I am no expert in the oil business, so no doubt there are factors I don't understand that make other companies even more attractive.

Do you see any companies that meet the low-risk/high-return-potential criteria better than or as well as SDC ?

Thanks in advance for any opinions.

AF
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