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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: pz who wrote (45997)	6/7/1999 2:46:00 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

Anyone looking at what has to be one of the sickest pups in the patch, PKD ? I thought when I started to look at it that it was a little ol' land driller with a $3 stock. Uh, not exactly. PKD has a huge operation (which is maybe the problem<ggg>). Their web site gives a rig count of 127 split up this way. 60 rigs in North America, 15 land and 45 barges/platforms/jackups in the shallow water and the transition zone...28 land rigs in Asia/Africa and 4 in the water...30 land rigs in South America with 5 in the water......73 land....54 water. It has a huge debt burden and may be on its death bed but it also has lots of assets that could give a lot of upside leverage under improving industry conditions. As a admittedly bad comparison, lets look at MRL, a company with its own problems. MRL has 18 rigs with 8 either idle, undergoing repairs or under construction. PKD revenues for 1Q 1999 were 4 times that of MRL but MRL's market cap is 3 times that of PKD. Selling at 2/3 of book value, it seems to me that, barring bankruptcy, PKD could be a real turnaround play. John