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

To: MARK BARGER who wrote (4256)	12/2/1997 4:25:00 PM
From: Big Dog	Respond to of 95453

Mark, I would choose (and have chose) FGII. While there are a number of drillers, there are fewer companies in the business of FGII. (Notice the new contract announced today by FGII for a new semi for MDCO.) I am tellin' you guys, this JL Holloway is a money-making SOB. FGII is going to make ALOT of money and we WILL some some "interesting" deals emerge. He will make money where it is not even envisoned at this point -- and therefore not figured into any earnings forecasts. The F&G name is highly valued and has been around the offshore industry since Day 1. I have extreme confidence in the future prospects of FGII. Even if the drillers start making lower day rates they will still need to have their aging rigs refurbished, repaired and fixed up occasionally. (The older they get, the more work they need to stay in good shape and in class.) Therefore, FGII is not dependent on the continuation of accelerating day rates to grow earnings. Granted, the more money drillers make, the more business they will want to do with FGII, but only to a certain point. In other words...if ABC Driller is making 80,000 a day with a rig he still has to have the same maintenance and refurb on it as if he were making 180,000. FGII will charge what the market will bear, regardless of the day rates. I haven't heard any analyst mention this side of FGII -- maybe they don't know this business as good as they think they do.

To: MARK BARGER who wrote (4256)	12/2/1997 5:00:00 PM
From: Teddy	Respond to of 95453

RE:"Both NE and FGII are selling for $30 a share. Which one do you see being the bigger money maker in the next year if you had to choose one over the other." From the last earnings estimates that i saw, in 1998: FGII $1.04 NE $2.27 It would appear that NE has much more upside, but there are, of course, other things to consider. Best wishes

To: MARK BARGER who wrote (4256)	12/2/1997 5:31:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 95453

I think you're still buying FGII at a signif. premium even at this point, whereas NE is a steal, but then again I own NE. Nice action today. Like what I saw in HAL and SLB. There is the possibilty that we could snap back without the long basing pattern of last year. I don't think the probability is high, but everyone seems to be looking for basing action. Too many in my opinion. How many people and fund managers have you heard say "I'd love to own the drillers and have no doubts about the fundi's, but I don't want to catch a falling knife. Well, the knife might have hit bottom today. Sure looks like it. All I'm saying is don't be so eager to dump your stock or sell calls and buy puts looking for a drop back to low levels, it might not happen, and then all this pain would be for nothing. Thean: did you pick up any NE today? I don't think you'll every see 26 even if we do pull back again. good luck! -Lucretius