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

To: davedb who wrote (46882)	6/24/1999 2:47:00 PM
From: Big Dog	Respond to of 95453

While there may be some validity to the "power" of FGI going forward, this latest reschedule is a non-event. The market is easily spooked when the word "delivery delay" pops up. The effects and causes of a delivery extension are not fully considered -- and were not effectively communicated by the company. In this case, the rigs don't even have a job to go to (JL made vague reference to that in the new press release by speaking of "rig demand".) There is no threat of a contract being cancelled or revenue not being earned to to a later delivery. So big deal if the rigs stay in the yard a few months longer. The delays were not caused by FGI, they were caused by the owners. FGI is able to not have to "bust ass" on the project and will be able to use more efficient scheduling and facility use. While there may be a few reasons "not to like" FGI, this latest event is not one of them. It looks like FGI is getting tagged today, and yesterday, with a double dose of sector weakness. There could easily be a dead cat bounce back to the 16-17 area, in my ever so humble opinion. The issue of Carl Crawford selling stock has also been raised...it seems he filed to sell about a million shares. The great bulk of these are long gong in the upper teens. Carl retired and is diversifying his investments...would you want ALL your wealth tied up in one company...any company? FGI's problem has been, and will continue to be its lack of incoming work. That is a valid concern. The other two items are not a concern and are an over-reaction. IMO big atoffshore.com