American Eco (ECGOF, ECX on Toronto exchange) Message Board

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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange)

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To: david james who wrote (1835)	3/2/1998 8:12:00 AM
From: MARK BARGER	Read Replies (1) of 2841

David, I owned FGII a month or 2 back and stopped out of it around $32. Like Big Dog, I too am bullish on FGII's long term prospects. I think Big Dog's bullishness comes from the fact that FGII's production yards are specifically designed for "assembly line" high speed fabrication of drill rigs. He argues that with their name value and design expertise that they have a certain franchise value assoc. with drilling rigs. They are known for turning out an outstanding product on budget and on schedule. Also, there is a difference between fabbing drill rigs and platforms. More design expertise needed to produce the drill rigs. FGII will have 5 yards going full speed ahead in '98 making all they can make, with no forseeable let up in the back log. Their operations turn out margins in the mid 20%'s. Definitely a sellers market these days. FGII has virtually no debt and a return on equity of 94%. Hence their P/E of 30. FGII also has outstanding management. CEO J.L. Holloway is a very savvy, aggressive businessman. He owns like 10 mil. shares or something like that, so he, like McGinnis, will be rewarded only as their companies prosper. I keep hearing Holloway referred to as a "money printing machine". I will get back into FGII sometime this year, but would like to see the price back down into the 20's first. Don't get me wrong I love the DBCO acquisition and prospects of using the Davie shipyard. I know we can fabricate drill platforms, but I wonder about the drill rigs. I'm sure the conf. call will talk about the psopects of the shipyard. Still holding my breath on earnings. Good luck all. Mark

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