Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SliderOnTheBlack who wrote (51439)	9/19/1999 11:42:00 PM
From: IndioBlues	Read Replies (2) \| Respond to of 95453

FGI's valuation metrics Slider, why are your price to book and price to sales metrics any more indicative of value than plain old price to earnings? FGI's pe is 6.91, UFAB is 16.09, and GIFI is 11.68. By that metric, FGI is undervalued to its peers. MDR (long here, with FGI) is a multi-division conglomerate so I don't know that we can directly compare it unless we break out marine division numbers. Your analysis of FGI's backlog is good. It is declining and that is cause for concern. So is Aggie's point that you can only upgrade old iron so far and so many times. I guess I'm banking, maybe naively, on JL's proven ability to get the big jobs that are there to be gotten. I mean, compared to FGI, how many $200+ mil. semis have come out of UFAB and GIFI? With added capacity now in Canada and France, I'd like to think JL can leverage that reputation worldwide.

To: SliderOnTheBlack who wrote (51439)	9/20/1999 8:09:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

Slideer, I think you are a bit confused over the $143 mm FGI order you term as "spec". It is not a spec order. It is an order that has been placed by Schahin Group of Brazil. It is an order for a new rig, not a conversion or refurb. And physical construction has not yet started. Steel has not yet been ordered. FGI is still waiting for Schahin to complete financing for the rig. Everything (all engineering, etc.) is ready to go. Schahin is using US Govt.-backed loan guarantees from MARAD Title XI. It is my understanding all that is left to obtain approval of the guarantee is a letter from Petrobras confirming the 6-year contract that Schahin has for the rig. Word on the street is that Petrobras will not cancel the contract. This whole process has taken way too long. But I know that FGI is making every effort to finalize the deal, and I expect we will hear shortly that the financing has been completed and construction will begin. I agree that including the $143 mm in the backlog may have been premature, but I understand this is allowable under GAAP. big atoffshore.com