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To: Think4Yourself who wrote (47609)	7/8/1999 7:33:00 PM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 95453

The FGI enigma... << Why would anyone want to hold such a large short position when the industry appears to have clearly troughed and is on the rebound, especially with such a clearly well run company? In retrospect, FGI was probably THE worst company in the industry to short then. I have also thoroughly reviewed their annual report, after which I bought more shares.>> Ken (not Karen by the way - right ?); Why would anyone want to short FGI ? 1. Many believe that the Deepwater Rig Construction Boom that FGI ran through $40 - was an anomaly, literally a one time, unrepeatable blip on the chart. They believe that they will not in the next few forseeable years come anywhere near this revenue base again. And with the softness in Deepwater dayrates - maybe they are right ? FGI must think so, that's why they diversified into HLX; with the Govermental and Maritime Boat Building busines.... 2. A ''Biggie'' here - because the insiders hold such a huge position and because J.L. Holloway retires in 2 years. His ''personal'' interests may not be quite the same as shareholders. He may be more interested in the preservation of capital than upside growth.... ie: a ''hedge'' ??? of the huge insider holdings... also, as this is speculation - it would totally explain the huge lack of Institutional ownership as compared to it's OSX peers. Perhaps (? speculating here) the Fundies may realize they are fighting a nearterm losing battle untill JL retires ??? 3. The weakness in the valuation metrics assigned to the entire Fab sector - GIFI UFAB HLX & FGI is not a positive here... ... I like FGI; but I am not interested in any major positions here; there are just too many unanswered questions. It is and allways will be a good trader - but, I ''aint'' so sure that anyone really has a handle on 'ole FGI...