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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: David Klein who wrote (4457)	12/24/1997 2:08:00 PM
From: Ian Achterkirch	Respond to of 120523

David, I have not verified this with the company, but based on the HMAR business strategy I believe that they will use this money to continue to purchase other fleets and to exercise their options on four new ships for 1998/1999. This company is very aggresive in their goal to ensure that they are the larget service provider in the Gulf of Mexico and the Middle East. They will do this through the continued aquisition of smaller competitors in those markets. In this way they will be able to exert control over the daily rates charged in those marets. DLJ calls this a "Price Leadership" strategy. Another point is that the day rates in the middle eastern market are currently depressed and are set to bounce back in 1998/1999. Due to their large presence in that market an increase of $500 per day would significantly impact their eps (DLJ estimates are between .25-.28 per share increase). I would sugggest that anyone thinking of investing in this company to call them as I did before investing. I did not know anything about this industry prior to that phone call. The Investor Services guy was very helpful. The number is 954-523-2200. Please post any other useful info. Ian