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

To: Big Dog who wrote (65061)	4/20/2000 12:28:00 PM
From: Big Dog	Read Replies (2) \| Respond to of 95453

From Dain Rauscher, on BJS: With the push toward cash earnings, it is interesting and significant that BJS's cash earnings for the quarter would have been $0.50 per share compared to $0.02 last year. As this method gains momentum, we should see the relative valuation move up. Previous cycle pricing leverage would push gross margins above 30% in a modest recovery, suggesting potential EPS of $3.00. BJ Services continues to show the potential to consistently surprise to the upside, which we believe warrants a premium multiple. Our 12-month price target is $76 per share, which is derived by applying a currently observed multiple of 32x our 2001 estimate. We strongly believe that investors should and will rotate dollars into sectors with more near-term promise of accelerating earnings, few of which can compare to the Oilfield Services sector. With the OSX at 110-112 and our 2000 price target at 150, we recommend aggressive purchase of the sector.