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: diana g who wrote (41739)	4/7/1999 11:16:00 AM
From: SliderOnTheBlack	Read Replies (2) of 95453

GaryB - what do those ''microwaves'' tell you here ? err Elliott waves... ...(VBG). PS on RIG again; this is the best buy in the damn patch - on a risk adjusted basis imho. RIG has an .80 cents eps higer earnings estimate than DO,sells at 6 x 2000 cash flow vs. 10 x for DO.... at a normalized PE of 15-18; RIG should sell for up to $12 more than DO ! it is a given that DO should get a premium for its superb balance sheet and cash horde, but if DO buys another driller - DO's stock will come under arb pressure in the short term and neartermwise - I don't see any immediate transactions as being a boost to their stockprice. If DO doesn't buy back massive amounts of stock, or make a transaction soon - their cash isn't worth the premium given imho. RIG is in no way shape , or form, in any peril with even a continued softening in Deepwater. We have a niche leader with still $2.00+ per share earnings ability in a depressed market selling for the low-mid $20's - a gift with the trend in crude prices imho - this is one that could very easily be missed in waiting for a bottom, if we get a quick reversal here. RIG could fly to $35 virtually overnight as we get throught this earnings period and if the initial OPEC compliance numbers are positive... if any stock is worthy of ''chasing'' down - RIG is the one imho.

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