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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Velocipher. who wrote (2568)	10/29/1997 8:15:00 PM
From: bw	Read Replies (3) \| Respond to of 95453

Greg..OK, how about GLM, that could easily earn $3 next year and trading today at $31? I have nothing against FGII, but it has led the recent runup, and as they say..."the harder they come, the harder they fall". NE, @ $34, could also earn $4+ in '98

To: Velocipher. who wrote (2568)	10/29/1997 9:59:00 PM
From: Big Dog	Read Replies (2) \| Respond to of 95453

Greg, you are right (IMO). With the addition of the Canadian shipyard we should start seeing additional revenue and revenue capacity almost immediately. Also, I expect margins to continue to improve as FGII bids additional work. As with the drillers, cost is not the primary deciding factor when it comes to shipyard work. Someone needing work done in order to get ready for one of these sky-high drilling contracts doesn't much care what it costs -- they just want the work done RIGHT and ON TIME. FGII/HAM Marine have the best reputation in the business and the DELIVER. (I have personally had a $6 million upgrade done for me by HAM and I know their quality is the best.) So margins will go higher on higher revenues. This equates to a higher PE (hopefully). Folks remember, the SIZZLE is what sells. MIND doesn't SIZZLE like FGII. MIND is just good steak -- sans sizzle -- so it sells accordingly. Someday the sizzle will be gone, but that day is not in 1997, or 1998. Until then, please hold your napkin up to your shirt so you don't get splattered. (Ala Ruth Chris Steak House) mike