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

To: energyplay who wrote (35685)	10/11/2004 1:22:23 PM
From: kollmhn	Read Replies (1) \| Respond to of 206131

Here's Goldie's report on LSS: Lone Star (IL/A): Lowering estimates on 3Q04 prennouncement ******************************************************************************** * LSS preannounced disappointing 3Q04 EPS of $0.85-$0.95, below our estimate * * of $1.32 and consensus of $1.23 due to (1) higher steel costs, (2) higher * * labor costs associated with transition from 2 shifts to 3 shifts at a major * * plant, and (3) lower pricing for specialty tubing. We are lowering our * * 2004/ 2005 EPS estimates to $3.09/ $4.25 from $4.15/ $5.65, and our fair * * value estimate from $39 to $35. Our 3Q and 4Q estimates are now both $0.85, * * revised from $1.32 and $1.43, respectively. Higher steel costs are likely * * to continue, and although OCTG prices are no longer rising faster than * * steel prices, OCTG supply-demand remains tight, inventories low, and * * potential for price reacceleration in 2005 is high. Despite 20% correction * * in LSS, we believe our IL/A rating remains appropriate, pending improved * * visibility on a reacceleration in pricing. * ********************************************************************************