Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (149454)	2/6/2002 4:56:09 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

I'm not Reaper, but I'll play him on the thread...I'd take a shot at PTEN in the sub 18.50 level, with tight stops. It's where the reaction low bottomed in mid November and also the 50% fib retracement of the big move up since 09/11. I agree with Reaper that they are among the best drillers out there that specialize in gas. Disclosure: No position in PTEN (or any driller) at the moment.

To: GraceZ who wrote (149454)	2/6/2002 6:25:10 PM
From: reaper	Read Replies (1) \| Respond to of 436258

PTEN -- Grace, I have a different view than Patron. I think the NG-related equities already discount a TON of good news. Patron and I argued about this a couple of weeks ago, but Patterson bought 17 rigs a few weeks ago for about $1.5mm per; the equity market currently capitalizes Patterson at about $4.0-$4.5mm per rig. So there was a guy who decided he'd rather sell his rigs for $1.5mm up front than wait to collect the future cash flows those rigs would generate over time. Since I live in this weird parallel universe where equities are worth the net present value of the future cash flows their businesses will generate, I have a very hard time convincing myself I should pay any more than $2.0mm to maybe $2.5mm for Patterson's rigs when private market transactions are going off at $1.5mm per rig. That would mean a stock in the low teens. I am targeting $13. I am an exceptionally patient man, and am willing to wait. If it never gets there, oh well, its not like there aren't 1000 other companies (or bonds) I could own. fwiw, Patterson is a GREAT company. Very savvy management, excellent on both the operations and financial / deal sides. Balance sheet is solid. And they and Nabors have rationalized the industry by taking over so many of the rigs (people don't price like desperate morons any more). I'm just a cheapskate. Cheers