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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: excardog who wrote (628)	2/28/2001 10:52:41 PM
From: Sharp_End_Of_Drill	Respond to of 23153

Ex-car, yes indeed over the last few years I have hated RIG's valuation. They have been too high in my opinion, but I now own them due to FLC. Don't really want to sell due to tax reasons and also the chance that they will develop into the famed 900# gorilla in the coming oil crisis, so I've got a type of straddle on them - long shares and short via puts. With the last few day's action the puts are showing their worth. My problem with RIG has been their PSR was too high, once reaching double digits which at that time, and even now, is absurd. Also I don't like the bumbles and stumbles of their newbuild program. Now that the ships are all finished and working, only the Sedco Express disasters remain - and disasters they are in my opinion. Two of three contracts cancelled, the remaining one's duration cut in half, fundamental design issues, and none ready to work yet. Where's the silver lining in that cloud? With FLC thrown into the mix the PSR has dropped, to about 6.7 now and I expect it to be less than 5 within a year - which is far more reasonable. The PE should turn back positive in three quarters time, and I expect it to be about 25 after Q4 2001 based on today's price of $48.13. Sharp