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Gold/Mining/Energy : Global Santa Fe (GSF) (formerly Global Marine) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Flugum who wrote (493)	11/5/1997 11:05:00 PM
From: BLong	Read Replies (1) \| Respond to of 2282

Thanks for answering my questions so quickly, Len. I had the same impression about the effect of the Middle East situation on the domestic oil industry, and it was good to get your opinion. With regard to networking stocks, CSCO is generally considered to be #1, although the P/E ratio is high. It is in good favor right now with MMs and has had a good run up lately. I sold all my stock in CSCO today to turn some profit. They will have a 3-for-2 split in December. Looking to get back in some time after that on dips. 3COM is generally considered second on networking, although some people on the COMS thread will disagree. In my opinion, COMS is a better buy right now with a lower P/E and the fact that the price has been driven down lately. Also INTC is making a lot of noise and is expected to go heavy into networking next year. When that happens, they will be CSCO main competition. As you probably know, INTC is down from it's high right now. I don't know too much about the other networking stocks, most of my interest is in semi, semi equipment, and PC builders. Back to oil, what do you think of GLBL? I know the P/E is higher than GLM, but the stock has been going up nicely. Bill

To: Elmer Flugum who wrote (493)	11/11/1997 11:47:00 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 2282

Len, You mentioned the lower than average PE of GLM relative to the other drillers. Of course, this brings up the tax questions again. Have you compared the companies on a cash flow basis? Also, the strongest sectors for dayrates are the ultradeep and harsh environment rigs. That would tend to favor NE,DO,RIG and RB among the deep offshore drillers and SDC with a strong harsh environment fleet. I like the economics of the ultradeep drillers both because there is increased demand around the deepwater Gulf of Mexico leases but more constrained supply. It takes at least two years and a pile of money to build new deep drilling ships, so they are not likely to come into supply/demand balance for some time to come. Two of the companies, Noble (NE) and Santa Fe International (SDC) seem particularly attractive around their capacity to dramatically increase earnings. NE is converting several of its shallow submersibles to deep drilling semisubmersibles, which will earn much higher dayrates. SDC has virtually its entire fleet up for new contracts within the next year or two; that should allow them to take maximum advantage of the high prevailing dayrates. Actually, all the offshore drillers should do well. Holding on to GLM, particularly if you have capital gains on it may make more sense than trying to shift into one of the other companies. Overall, it is a very promising sector with a continuing rising tide that should float everybody's boat higher. Good luck. Baird