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: Big Dog who wrote (12887)	3/1/1998 10:41:00 PM
From: david james	Read Replies (3) of 95453

Tomorrow morning, American Eco should announce earnings before the bell. American Eco is currently has a P/E of 11. First Call has a mean estimate for the 4th quarter 97 of 35 cents which would represent a growth of 85% over 4th quarter 96. The drop of the price on Friday, suggests to some that they may miss estimates, and there is some nervousness about that. Should they meet or beat estimates, the stock should move up nicely in the a.m. The company also plans a conference call tomorrow afternoon. American Eco is involved in oil remediation and fabrication for the oil and gas industry in the north Atlantic. They have also announced their plans to acquire Dominion Bridge (DBCO). Dominion Bridge currently has a backlog of $512 million and is in the process of refitting the Spirit of Columbus - (an oil platform) One of the most popular stocks on this thread is Friedman Goldman (FGII). Big Dog has made an excellent case for Friedman Goldman. American Eco and Friedman Goldman will be competing for some of the same projects in the Maritimes. I do not mean to question whether FGII is a good value with strong growth prospects. But the size of the companies, the expected growth, and the backlog are in the same ballpark while the stock price and P/E of FGII is 3 times higher than ECGOF. Message 3332031 A comparison of Friedman Goldman (FGII) and American Eco (ECGOF). Data from First Call ECGOF FGII Price 11 3/16 30 3/8 trailing P/E 10.9 33.4 1998 estimate 1.40 + DBCO 1.44 5 year earnings growth rate 83% 23% Backlog ~600 mill* ~320 mill exp 98 Revenues $1 bill* $500 mill?? # of shares 20 mill 24 mill * with DBCO Big Dog argues that the $1.44 mean estimate in First Call will be exceeded by FGII in 1998. However, the $1.40 on ECGOF does not include the additional earnings of DBCO which the CEO has stated will be accretive. If the CEO is correct about his estimates of $1 billion in revenues with the combined companies, just 5% margins would produce $50 mill in earnings, or over $2/share. In any case, I think its worth watching tomorrow to see if they can hit their estimate of 35 cents. David Eco thread Subject 14538 Eco summary techstocks.com

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