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: BigBull who wrote (62921)	3/25/2000 2:03:00 PM
From: chowder	Respond to of 95453

Hi Big Bull! Re: VRC/TBI Merger...... I'm not so sure I like this proposal. As you may know, I've followed VRC for a while and I owned shares in them for the past year. I asked someone I know, in the business, whose judgement I trust, and this is what he told me about this merger proposal. >> VRC is primarily a manufacturing company and TBI is historically a service company. VRC can probably quickly integrate the manufacturing part of TBI but I don't believe there is a lot of overlap in capacity (as compared to the BJ product lines VRC picked up a couple of years ago). VRC's organization doesn't have anything resembling TBI's inspection and air drilling services so there is no opportunity there. VRC's tong peddlers can't help sell those services because it's primarily a different customer base. VRC doesn't make what TBI uses so I just don't see much synergy there either. The deal does keep the VRC execs on the payroll so I can see what's driving the deal from that side. TBI is getting a price far better than their wildest dreams so I see why those guys were all for it. Don't think I'll be buying any VRC. All in my cynical opinion and I have certainly been wrong before. << Add to this that every merger thus far in the oil sector has caused the investors to sit on dead money while the companies tried to work thru the merger and assimilate their product lines. I am out of VRC for the time being. There are too many other opportunities elsewhere without the "uncertainty" that exists here. In my old age, I'm getting to dislike "uncertainty" as much as the analysts do. Good grief, perhaps there's no hope for me after all. <g> I sincerely wish you VRCer's the best of luck. dabum