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: Crimson Ghost who wrote (37969)	2/22/1999 4:46:00 PM
From: Gary Burton	Read Replies (2) of 95453

I don't think it will be long now,maybe a week. ---I bought some more VTS this afternoon at $10ish,even though it may dip to the low 9's before the decline is over. It's by far my largest holding. Merrill reduced their eps estimates for 99' to $1.00 on Friday.Yahoo thread comment on the weekend was as follows "VTS is now trading at 2.4x Merrill's est 99 Cash Flow vs its historical range of 4-9x.Also, the ratio of Market Cap (debt plus equity) to est 99 EBITDA is now also 2.4 relative to an historical range of 4-8x...Relative to the same ratios for PGO, VTS is trading at a 44% discount based on cash flow and a 63% discount based on MarketCap/EBITDA..." I might add that VTS also has an excellent balance sheet where TOTAL libilities, net of $3.37 in cash reserves, is only a meagre 25% of tangible book equity (13.40) and the Price/Sales Ratio (Price less Cash/sh, all divided by Jan qtr est annualized sales)is a paltry 0.30. And this for a company that is expected to still be profitable in 1999. This is absurd notwithstanding the industry problems and VTS' 40-50% land content. my 2c

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