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

To: Broken_Clock who wrote (10293)	2/1/1998 1:19:00 AM
From: Czechsinthemail	Respond to of 95453

Dave, My choice would be to steer clear of the boats until the smoke clears. I think there are many other drilling and oil service companies with much better visibility. The only company doing significant marine transport business I own is ESV, and it's a pretty small part of the picture for them. They claim that they aren't interested in a turf battle to defend market share, so if push comes to shove they will simply use their boats to supply their own rigs rather than get into a rate war. At this point it isn't clear whether the additional supply boats coming online will create a rate-dampening surplus or whether TDW is warning of that possibility to reduce further building projects. While the uncertainty remains, I think investors are likely to hold back and the boat companies will underperform. Good luck, Baird