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

To: Mel Spivak who wrote (2705)	11/4/1997 3:54:00 PM
From: AltLar	Read Replies (1) \| Respond to of 95453

I too am wondering why CKH is so cheap. All the drillers are up today and CKH is down. Can anybody shed some light on what is going on with it? Is it just an undiscovered buying opportunity or is there some bad news lurking out there for CKH?

To: Mel Spivak who wrote (2705)	11/4/1997 11:05:00 PM
From: Bill Li	Read Replies (2) \| Respond to of 95453

<CKH has a PE of only 11. Why is it so cheap??> It got hurt by the co's late-Sept issurance of $150 m of 7.2% senior notes, as no immed. use of the funds was disclosed. According to Smith Barney, that is unwarented, given mm proven track record. As of 10/31/97, Smith Barney have a 1-m rating on CKH, with 12m target of $84; Equity Reseach-Americas, buy rating; Furman Slz, recommeded list, target price of $75. They think CKH is undervalued, trading at around 11x estimated 1998 EPS and 7.9x 1998 cash flow per share, compared to its peer supply boat cos like TDW, Hvide and Trico. Raymond James gave CKH a neutral rating, concerning the co's undisclosed plan for the future use of its $300m cash. Also, according to Edison Research, CKH could be a potential short squeeze target. The current # of shares short in CKH is 1,310,557 vs previous 1,272,421, a 3% increase. I think CKH is a buy at current level. Bill