Diana I have spent the last 3 hours reading everything possible on the drillers and FLC. I cannot find any thing negative except the market action. I preffered RB as a deep water driller, but the analyst say the merger is good ???? Current Earnings EST's for the Mar. qtr. .42 (1st call) and .47 (Zachs). FY 98 are 2.11 and 2.18 respectively and 99 is 3.35 and 3.34. The companies in this sector seldom report +5% or -5% from the est. because of the long contracts. So I believe the estimates will be close.
If I am correct we are looking @ a stock selling @ a P/E of 12 on 98 earnings, and 7.7 on 99 earnings. The 5 year growth rate is projected @ 41%.
Short term I hate FLC, but when I stand back and look at it like a new investor, I say WOW this hummer looks great!!! This sector has got killed way beyond reality. These guys have firm contracts for 90% of their rigs through 98 and 99.
Something I find interesting , I read IBD every day, before the merger, I always seen comments on R&B and FLC. Since the merger NOT ONE MENTION!!!
Bottom line this stock is very frustrating, but if we could stop checking daily, and just put it away for 1 year, we would be happy campers. Hopefully some of you can do that, as Clint Eastwood said """Every man has to know his limitations"""" Although I know this is the right thing to do, I also know my limitations. Good Luck Don
PS Your comment gain, I'm no stock maven. I'm just a simple grrl who knows almost nothing about drilling. Six months ago I thought the stock market was where they sold cattle and hogs. I'm just trying to figure this stuff out as I go along. I welcome criticism and correction. Was the best!! you do not deserve any critisim. Hang in there.
We will win long term. Don |
