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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bocor who wrote (6126)	1/22/2002 2:08:00 PM
From: Big Dog	Respond to of 206203

From Salomon re HC: * We believe the stocks of the compression service companies, Hanover Compressor and Universal Compression, represent the most compelling values in our coverage universe. * We believe compression sector fundamentals remain very positive, and both companies have in recent years grown earnings by more than 40% annually. * More importantly, our analysis shows they have consistently earned above their cost of capital since going public. * Both stocks are trading at a 60% discount to the P/E ratio of our small/mid-cap comparable group. This is an extremely excessive discount, in our view, given the companies' strong track records and our positive industry outlook. * Believe recent accounting controversies have exaggerated investor fears about off balance sheet financing. We find both the HC and UCO structures to be straightforward and well disclosed, and thus reiterate our Buy ratings.