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

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To: The Perfect Hedge who wrote (9248)1/22/1998 3:07:00 PM
From: Bill Li  Read Replies (1) of 95453
 
ID: NMDWMF Src: FC TM: 11:45 22Jan 22-Jan-98 12:47 NYC PAGE 1 OF 5
us;SLB Schlumberger Ltd +72 13/16 (P)12:47 DN 8 11/16V 7001000
ML: RESEARCH SUMMARIES:Intra-day Special Calls:DO,SLB
Merrill Lynch (Investor Support) AMCALL DO SLB SUMMARY
ML++ML++ML Merrill Lynch Global Securities Research ML++ML++ML
RESEARCH SUMMARIES
Intra-day Special Calls:DO,SLB
Investor Support


Diamond Offshore (DO;$44 13/16;C-2-1-7)
Dec98E $3.35

o On a fully diluted basis, DO reported Q4 of $0.55 vs. $0.41, below our
$0.56 estimate.

o Costs on the rig side were higher and the company expects costs to
continue to trend higher.

o DO is still enjoying good growth and signing contracts at attractive
rates.

o We recommend buying the shares particularly on weakness.

(K. Simpson)
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