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: SargeK who wrote (54794)	11/15/1999 11:34:00 PM
From: The Ox	Respond to of 95453

$33 oil?http://www.stockhouse.com/interviews/nov99/111699com_walan.asp

To: SargeK who wrote (54794)	11/16/1999 11:41:00 AM
From: SargeK	Read Replies (1) \| Respond to of 95453

FGH( Potential 11/16/99) Since there appears to be more than sufficient gloom available for consumption, I will attempt to briefly summarize information that I perceive may contribute to a more positive future scenario for Friede Goldman Halter, Inc. 1. $141.8m of backlog was worked off during the quarter, by the combined companies: $873.3m ending 6/30/99 to $731.5m (Friede: $337.97 plus Halter: $393.67m) ending 9/30/99. While only problematic, at this point, it would appear the backlog may be sufficient to carry the company until business becomes more brisk in this sector of the industry. From these numbers (working off approximately $47.27m per month; it may be extrapolated that if the current status quo is maintained, the combined companies have work on hand for the next 15+ months. Unlike current capital market valuations, I find encouragement in these numbers. 2. Just prior to the FGI IPO in the summer of '97 the company's workforce consisted of approximately 800 employees leased to the company. All employee contract leasing terminated a/o 5/18/97. At 9/30/99 FGI employed approximately 2700 non-union workers. During this time frame, book value and stockholders equity has grown by multiples. 3. Mr J.L. Holloway, CEO, etc. has repeatedly stated his intentions of growing the company and stock holder value. According to the (merger) proxy, dated 9/27/99 the List of Stockholdings included: J.L. Holloway, shares: 7,349,477 plus 90,000 non vested stock options; J.L. Holloway Family Trust: 1,920,500 and Voting Trust (Phyllis D. Holloways): 650,000 shares for a total of 9,919,977 shares (approximately 24% of shares, Outstanding).. Additionally, under terms of the merger, Mr. Holloway entered into a 2 year employment agreement which granted Mr. Holloway an option to purchase (over the next 4 years) 1m shares of FGH common stock at an exercise price equal to the closing price of FGH at the effective time of the merger, which according to my notes was 10 ¾ on 11/4/99. 4. The merger with Halter provided Mr. Holloway with an additional, trained workforce of several thousand employees and diversified the company into commercial and military ship building, which reduces the Boom/Bust cyclicality of almost complete reliance on the Energy industry which existed prior to the merger. The synergies and efficiencies of the merger should contributed significantly to the bottom line over time. 5. BOTTOM LINE: Mr. Holloway has stated his foremost goal is to build stockholder value. In the past 2 ½ years, he has done so, IN SPADES. Based on his own holdings and incentives, mentioned above, I have no reason to DOUBT, Mr. Holloway will continue to build value and if he does, the MARKET will at some point in time recognize both the fundamental values of the combined companies and the enormous talents demonstrated by Mr. Holloway. PATIENCE IS NOT ONLY A VIRTUE, IT CAN BE FINANCIALLY REWARDING. SargeK