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

To: A. Fineigler who wrote (9227)	1/22/1998 1:59:00 PM
From: Lazlo Pierce	Respond to of 95453

AF, I was watching SDC closely this am., and saw a wave of selling hit it and knock the price down to 35. It bounced quickly, and has been hovering ~ 36.5. Dave

To: A. Fineigler who wrote (9227)	1/22/1998 2:32:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

AF, I think your suggestions for selecting companies with low debt, high cash, deep drilling, low PE's etc are good, particularly for those wanting to play for the long term. In general, I think the offshore drilling companies offer better PE/Growth comparisons, and the deep offshore drillers better predictability. I think SDC is a good play, particularly around their international exposure and strong balance sheet. NE is my favorite, based on strong earnings growth comparisons. They should grow by about 100% this year and 50% next year. Much of that reflects renegotiated contracts and conversion rigs coming back into service. At those growth rates you are looking at a PE of about 12x this year's estimated earnings (which may be revised upward as we go forward). Baird