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To: SargeK who wrote (63941)	4/6/2000 1:46:00 PM
From: SargeK	Read Replies (1) \| Respond to of 95453

FGH - Conference Call "Snap Shot" Since the CC was focused on 4Q/99 (3mos FGI, 2mos HMG) and FY/99 (proforma) results, I did not think it appropriate to ask questions regarding events which have occurred since the end of that period. As previously stated, I am much more interested in this year and next with regard to charges previously taken; but, subject to recapture and the increasingly positive environment as the industry continues its recovery. For example: Petrodrill - A/O 12/31/99 "There was $50m remaining in reserves for losses WHICH DO NOT include any amounts which may recovered from claims asserted." NOTE: The amount of claims asserted in the counter-suit against Petrodrill was $68.5m which the Company states it will aggressively pursue following the 6 months stay in the U.K. litigation. If a settlement is reached comparable to the Ocean Rig dispute, I expect earnings this year and next to be VERY positively impacted. Ocean Rig: A/O 12/31/99 "$16.0 million remained in loss reserves for future costs exceeding contract revenues." The FACT the contract was revised upward $43.0 million in Jan '00 begs the question of how this will IMPACT 1Q/00. IMO, VERY positively! Questions regarding liquidity were answered to my satisfaction (there was very little added that wasn't already in the 10-k with exception of the $5.4 million in net proceeds expected in the sell of the yacht division which is closing manana!) The approval of Waiver in non-compliance of Credit agreements had already been included in the 8-k, so information in this regard was redundant; but, provides fodder for the expected negative SPIN from certain quarters. One positive note (actual news) was that SG&A for FY/00 would be reduced by $20.0 million from proforma '99 with little impact on operations. That is an indication (to me) that synergies and efficiencies of the merger are already being realized, with more anticipated. I view the CC as ho, hum since very little was added to the information available in the 8-k. Have a good day SargeK PS I suspect that institutions and other value investors are using this opportunity for further accumulation of FGH at bargain prices. I am sure they are all grateful to the to the "BOILER ROOM" for its continuing assistance in this regard.