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

To: jim_p who wrote (72299)	9/5/2000 10:39:22 AM
From: jim_p	Read Replies (1) \| Respond to of 95453

Interesting comments from Raymond James on CRK: Comstock Resources (CRK/$9.94/Strong Buy) is poised for explosive growth based on the company’s drilling success during the last 12 months. Comstock should continue its rapid growth in production and reserves, generating a compound annual growth rate (CAGR) of 15-20%. More specifically, several of the company’s recent drilling successes are scheduled to commence sales in the late third and fourth quarters, which should increase Comstock’s daily production to approximately 125-128 MMcfe/d by year-end, locking-in a 20% increase in production from the company’s second quarter levels. So far in 2000, Comstock has been successful on 21 of 22 wells drilled, including the two largest Gulf of Mexico discoveries in the company’s history. During the second half of 2000, the company plans to drill approximately 15 exploratory and 18 development wells, focusing primarily on its Gulf of Mexico and Southeast Texas core areas. Comstock remains one of the most efficient operators in North America. Despite the recent rise in the company’s share price, Comstock is undervalued at current prices, trading at a discount multiple of 2.5x our 2001 cash flow estimate, compared to 3.3x forward 12- month cash flow for its U.S., small-capitalization peers. Our 12-month target price of $15 is based on a conservative 3.6x multiple of our 2001 cash flow estimate and offers investors a potential return in excess of 44%. Jim

To: jim_p who wrote (72299)	9/5/2000 10:50:59 AM
From: Tommaso	Respond to of 95453

About ten years ago I had a talk with a former tanker captain who had worked through all the earlier oil crises, embargoes, etc. He was retired and had no reason to conceal anything. Also, he struck me as very direct and honest. He said that there was never any "hoarding" caused by deliberate delays in tanker deliveries--that they just did the best they could to stay on schedule. I think he said that the price on a load was already settled anyway, but I might be wrong about that. The point is just that any hoarding would be on shore and not in tankers. (I have heard speculation otherwise).

To: jim_p who wrote (72299)	9/5/2000 11:05:07 AM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 95453

JimP, Thanks for those Raymond James (tanker notes). Very interesting and very important. However, I start to get a little worried when we get into a "can't lose" situation, but in no way has this information been disseminated by the general public or the media at large. (So I don't think it's priced into OS stocks yet). Still very bullish long term, but I'd like another pullback in the OSX before I get wildly bullish in the short term.

To: jim_p who wrote (72299)	9/5/2000 11:12:53 AM
From: BigBull	Read Replies (2) \| Respond to of 95453

Jim, Re Tankers: This article confirms what Raymond James is saying about tankers. What happens if a major refinery blows and the tankers have to re-route? Very screwy stock data, that's what. Should be an interesting winter. So hopefully the OSX dribbles down below 130 pre opec so I can finish loading MY tanker. ;o} quote.bloomberg.com Shipping capacity has also been cut as tighter rules governing ship design have forced freight lines to scrap 20-year-old tankers. ``There's an extreme imbalance in demand and supply which can't be corrected so quickly,'' said Yoshio Takanashi, general manager of the tanker division at Mitsui O.S.K. in Tokyo. ``I'd say this trend will continue for another 6 months.''