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Gold/Mining/Energy : Alpine Oil Services ASL TSE -- Ignore unavailable to you. Want to Upgrade?

To: Rick Thomas who wrote (848)	9/23/1999 11:41:00 AM
From: Salt'n'Peppa	Read Replies (1) \| Respond to of 896

Rick, Gerry and others. I have been watching Alpine for a long time now. This company seems to have an excellent business strategy, despite what some folk on this thread seem to think. They have made a series of strategic acquisitions at a very advantageous time. Oil & gas prices are high. Drilling activity is only just beginning to increase. ASL have taken a hit this summer in part due to acquisitions and in part due to slow oilpatch activity. The service sector typically lags behind oil companies because it takes a period of stability in commodity prices to gain the confidence of oil companies. With renewed confidence, oil companies can then increase drilling budgets. Forecasts are for a record number of gas wells to be drilled in Canada for the next 2 years. Alpine has a larger fleet than ever before and I think we are going to see steady growth in their share price right through next spring. Someone mentioned a 25% dilution of ASL shares when they take on Techcorp, but this is well known and I think the market has already discounted this into ASL shares. I was involved in another service company three years ago, that did a very similar thing. Anorak Capital, which was an oilfield equipment rental business, took on Total energy services and some other small outfits and then took advantage of the busy 1997 season. Their shares went from 40 cents to $2.00 in a few months. Here's to a very cold and very busy winter drilling season. Cheers, S&P