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

To: Meridian who wrote (74733)	9/26/2000 7:08:41 PM
From: Sharp_End_Of_Drill	Read Replies (1) \| Respond to of 95453

Meridian, <<South Texas Drillco will continue to have good days. This is a stock that could trade at double where it is now IMHO. If we need more rigs in order to drill more gas, then existing rigs will move to replacement cost dayrates ... rev will peak at $50 mm. There are 11 mm shares out. That's cheap relative to other land drillers. Real cheap.>> If you wonder how cheap is cheap, look at this. Based on PSR as of the last quarterly results, and today's prices, STXD's price would have to go up the following percentage to match these other land drillers: PKD - 23% PDS - 69% (corrected for Canadian dollar) TBDI - 138% UNT - 200% GW - 262% NBR - 515% Now you can see why my favorite land guys are STXD, PKD, PDS, and to a lesser extent TBDI. I also like the fact that they acquired and are building a total of seven new deep SCR rigs, which are in white hot demand now for gas drilling. I figure revenue will peak at $66 million in eight quarters, and I'm using the diluted number of 12.3mm shares for my calcs. Sharp