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To: SliderOnTheBlack who wrote (63955)	4/6/2000 10:45:00 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

OT: Mary Meeker pulled her best punch on Yahoo this morning, calling the numbers "awesome". Many analysts also raised their target prices dramatically. Investors aren't as dumb as they used to be. 11 million shares so far today and it's flat. There's hope for techland...

To: SliderOnTheBlack who wrote (63955)	4/6/2000 10:45:00 AM
From: Big Dog	Read Replies (2) \| Respond to of 95453

KEG Opinion from Dain Rauscher:Stock Opinion Our near-term price target on KEG is $14 per share based on the strong cash flow generation capability of the company and the ability and willingness to de-leverage the balance sheet from operating cash flows. At 10x our 2001 cash flow estimate of $1.40 per share, still a discount to the peer group valuation, we expect the stock to continue its recent momentum and trade up further as pricing, utilization, and results improve. KEG currently has an existing asset base that can generate at least $250 million in EBITDA without any further acquisitions, but well before any concerns about replacement-level day rates. Our current forecast for FY2001 is only $159 million. At the current Enterprise Value/EBITDA multiple, the EBITDA target would imply a stock price of $17.50. Assuming that level of cash flow would be reached in two years, discounted back, we get a price target of $14 per share. Clearly, reaching that level earlier pushes our price target higher. Since the company continues to reduce debt, lowering its risk profile, we should see multiple expansion. The higher operating margins and accelerating growth argue for multiple expansion as well.