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

To: Keith Feral who wrote (136102)	6/24/2010 1:59:47 PM
From: profile_14	Read Replies (1) \| Respond to of 206326

Also note that not book value, but salvage value, is around $48/share, as defined by the liquidation of one rig at a time according to Gabelli. I have seen EPS estimates between 5.68 and 9+ for this year and next. The lower estimate assumes all of its GOM deepwater rigs are idled for the next year and one-half and that they are not rehired, an outcome even that analyst thinks is very unlikely. My sense is that earnings are likely closer to the middle to upper end of the revised range and that we will get a one-time hit along the way for this fiasco. They should recall their 6% dividend now and buy back stock IMO at just above salvage value, drastically reducing the float.