Bald Eagle, First call just released estimates on earnings for PKD & SESI. These estimates must have been based on a non-merger between these two companies.
PKD 1998 $.19 1999 ($.14) 2000 $.06
SESI 1998 $.41 1999 $.48 2000 $.60
Parker said this merger would be immediately accretive to earnings. It is obvious that this would in fact be the case.
For purposes of estimation I used 65,000,000 shares PKD & 29,000,000 shares SESI.
1999 would shake out as follows:(assuming two separate entities)
PKD 65.3m*($.14)= loss ( $9,128,000)
SESI 29.2m*$.48 = profit $14,006,000
Net profit of $4,888,000
Combined there would be approximately 93,777,00 shares and a net profit per share of $.052. Like PKD said...immediately accretive to earnings.
Unfortunatly $.05/share isn't going to support a very spiffy stock price. I happen to own both these stocks but five times as much SESI. In the FWIW category..I'm voting against the merger.
I think we should be getting two PKD shares for each SESI. In fact it could be argued that the only reason PKD is holding up at all is because they are merging with SESI.
Dave |
