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To: Tom L. French who wrote (3208)	11/19/1997 2:59:00 PM
From: HH	Read Replies (1) \| Respond to of 95453

To All; I have watched your post and I am very interested in learning more about this sector. I have seen many talk about a bottom or "bargain prices" etc. However, no where is there any mention of PE. For example the market cap of FGII reached over 1 billion USD. 10 times sales!!! PE of over 60 !!! Couldn't one conclude that momentum carried many stocks up beyond realistic valuations? HH

To: Tom L. French who wrote (3208)	11/19/1997 3:44:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 95453

Hi Tom. My approach is to buy more. I especially like ESV, TDW and VRC. I don't think the sector is over-priced, and from all that I can gather, it appears that earnings will continue to look good for the next several years. The thing that I like about these stocks is that they're like commodities in short supply, and the demand will only be mitigated by overcapacity in the industry and we should have good visibility on that issue based on the number of new rigs coming on-line. Regards, Paul