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To: patron_anejo_por_favor who wrote (139904)	12/21/2001 2:33:43 PM
From: yard_man	Respond to of 436258

everyone needs a little squeeze around the holidays --

To: patron_anejo_por_favor who wrote (139904)	12/26/2001 4:23:42 PM
From: reaper	Respond to of 436258

Patron -- did you see this Patterson deal today? They bought 17 rigs for a total purchase price (mostly cash, but some stock and a warrant) for about $1.55mm per rig. This is curious to me 'cause if you multiply Patterson's current asset base (319 rigs) times that private market value per rig ($1.55mm), you get about $500mm. Yet Patterson has a market cap of $1.9 billion. I understand that Patterson is not just a collection of assets but an ongoing business operation with intangibles like management and growth prospects and what not, but jesus, here you have a willing buyer and (likely) willing seller coming together and establishing a private market value for rigs at $1.55mm each, and Patterson in the public market is trading for nearly 4x that number. It sure isn't just tech stocks that are too expensive any more. Cheers