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Non-Tech : Hvide Marine HMAR - High Growth, Undervalued -- Ignore unavailable to you. Want to Upgrade?

To: Douglas A. Sevy who wrote (67)	12/1/1997 3:25:00 PM
From: Grommit	Read Replies (1) \| Respond to of 547

I think because $ oil is dropping. I am not 'in the industry' and would appreciate an opinion from an expert. But it seems that if oil goes below a certain level that deepwater rigs become uncompetitive and the rig owners lower day rates to keep the rigs operating. I do not know what that price is, but believe it to be quite a bit lower than present prices. Anyway, the key to me is that they keep the rigs OPERATING. It has to be good for us, with the new rigs which are on order. Unless the rig owners come to the boat owners looking for day rate price concessions. Anyone know if this is a possibility? With the consolidation in the GOM can the few boat operators hold their 'ground' (or water)? I think I painted worst case scenario, unless you consider that oil rigs on order would be delayed or cancelled if the price dropped a whole lot. But I suspect the HMAR stock price drop is overreaction, and loaded up some more. Do you think supply boat day rates more depentent on supply and demand of boats, or on oil price?

To: Douglas A. Sevy who wrote (67)	12/1/1997 5:29:00 PM
From: Robert T. Quasius	Read Replies (1) \| Respond to of 547

Concerns about the dropping price of oil, and the easing of tension in the Middle East. Also, the oil field services sector saw quite a run-up in stock prices, and late in the year mutual fund managers are taking profits. I still say that long term HMAR and TMAR are excellent stocks to hold. The fundamentals of their business really haven't changed, and long term the demand for oil and gas will outstrip supply, spurring demand for offshore drilling. In the case of HMAR, they also have the tugboat consolidation and chemical/petroleum transportation businesses, which both look very attractive. I'm seriously considering increasing my stake in these two companies.