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

To: Grommit who wrote (79)	12/4/1997 6:10:00 PM
From: Robert T. Quasius	Read Replies (2) \| Respond to of 547

I agree with all of your comments except the one about a round tugboat being like a bumper boat. Tugboats already have the ability to direct their thrust in different directions. The difference in this one is that the new design is essentially round and can direct thrust in any direction, and with less crew than a conventional tug. The CEO is right about shipbuilders being out of the business. I was in shipbuilding until about ten years ago designing systems, etc. for Navy ships, for Newport News Shipbuilding. Commercial shipbuilding was essentially gone in the U.S. except for small boats and some repairs/overhauls. Shipbuilding in other countries was largely fading as well. In light of this, I find it amazing that Hvide is building double hull petroleum and chemical carriers at Newport News Shipbuilding. The new law is really a shot in the arm for U.S. shipbuilders, since these new ships must be U.S. built if they serve the intercoastal trade. This also is aggravating the situation for offshore supply companies like HMAR and TMAR, since much of their business likewise requires U.S. built vessels. It not only takes 18+ months to build new boats, but even longer if shipyards must be reopened or constructed as well! The shortage of supply boats and special vessels for offshore drilling is not going to go away in a year or two, and the demand for oil continues to grow and outstrip production, even with the increased drilling. I've been reading news from small cap oil companies that are falling behind in their capital programs due to shortages of seismic equipment, rigs, crews, and just about everything connected to oil exploration and drilling. I am still extremely bullish on HMAR and TMAR, and the oil business in general. The only drawbacks that I see is that many of the oil drilling stocks are fully valued. HMAR and TMAR are not, and I think this is because of their marine transportation classification.