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: SargeK who wrote (37238)	2/11/1999 1:23:00 PM
From: SargeK	Read Replies (2) of 95453

Friede Goldman - FGI - Conference Call...... Holloway/CEO deftly fielded all the questions posed by optimists and the skeptics. When asked about profit margins going forward, Holloway indicated they were turning down less profitable business and staying with their game plan on the high end (18 - 22% profit margins) business, including the recently announced $143m Brazilian contract. He also indicated they had also picked up a couple of smaller contracts last week. He stated he expected business to remain solid with good earnings even "with Soft commodity prices". The company had approximately $43m in cash 12/31 and expect to cut Capital expenditures in 1999 by 85% to conserve cash. He said the company is on the look out for more acquisitions especially in the equipment companies with good technologies. While authority still exists for additional STOCK buy back (They repurchased over 1m shares of their own stock in 1998), at the present time they are holding the CASH to possibly put it to better use in acquisitions. He also indicated they would not be buying any more shipyards. The company is presently hiring (having recently added several hundred). Their employee count is now approx. 4200. He expects future business in Brazil which he indicated was one of the more stable markets in the world. Friede Goldman is the World Leader in its niche and sees itself growing for years to come. I was tempted to take profits today, but decided to hang onto my shares for the long hall. I don't want to try to catch it when (not if) FGI takes off. If this company could get a divorce from the OSX it would be a $40 to $50 stock based on fundamentals, high margin back-logs, outstanding management, and overall potential. As the market recognizes the changes in supply/demand trends in crude, FGI will be a leader out of the starting gate with GIFI close behind. K

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