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

To: SliderOnTheBlack who wrote (51256)	9/16/1999 10:11:00 AM
From: articwarrior	Read Replies (1) \| Respond to of 95453

Slider though I can appreciate your opinion you fail to see the obvious benefits and synergy from two huge fabricators of STEEL working together. This synergy is what has drawn me to the merger. All the raw materials to build ships and to build "Huge rigs". Yes the backlog is slowing a bit for perhaps 2 quarters however the demand for the shipping industry is increasing dramatically. JL saw this coming just as he saw the boom in rigs. If you consider the pure potential of keeping all their workers fully employed all the time and demand from both sectors screaming in 2 quarters the answer I come up with each time is excellent buying opportunity for mid-term appreciation and huge upside potential long-term! Artic

To: SliderOnTheBlack who wrote (51256)	9/16/1999 10:22:00 AM
From: Gameboy	Read Replies (1) \| Respond to of 95453

Slider, here's one reason to bother with FGI and may explain some of the FGI shorts. Consider shorting a $100,000 worth of FGI (8743 shares at yesterday's close) and buying $100,000 worth of HLX (similarly, 17,391 shares). When the shares convert at .57 shares of FGI for every share of HLX, you would receive 9,913 share of FGI for your HLX. Cover your short position and you would be left with 1170 shares of FGI. Every $1/barrel rise in the price of crude pumps another $75 million dollars/day into the oil industry; when the kitty gets big enough these laid back oil execs and bankers will start scrambling for all their worth. Plot the rise in the offshore oil rig utilization (it's risen five weeks in a row) and you'll see that full utilization will be reached (at present rates) in about 8 months. I'm willing to bet the rate of increase accelerates. King Oil is back.