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

To: Czechsinthemail who wrote (11069)	2/9/1998 2:54:00 AM
From: Steve Childs	Read Replies (1) \| Respond to of 95453

Some random thoughts... FGII reporting after market close Feb 12. CDG on Feb 16. Both managements are comfortable with earnings estimates. (My guess is that CDG will beat by 10%; FGII by 20%) Also my bet is that FGII's 1998 backlog, with the addition of $200+ million in new contracts, will equal twice the revenues of 1997. They will show growth of 50% plus next year. This is at the very least a $45 stock, and CDG is at least a $60 stock. Also, MAVK should climb another 25-30% based on fundamentals. U.S. will not attack Iraq until Feb 20th...the first day of NO MOON over Iraq....for 6 days. If there is an attack, the drillers are just as likely to go down as up due to the instability.

To: Czechsinthemail who wrote (11069)	2/9/1998 4:59:00 PM
From: John Carpenter	Respond to of 95453

Baird and thread, The phone number to hear a replay of the RIG conference call is: (402)220-0102 If you're asked, the confirmation code is: 409915 John

To: Czechsinthemail who wrote (11069)	2/9/1998 10:14:00 PM
From: John Carpenter	Read Replies (1) \| Respond to of 95453

Highlights of RIG Conference Call: A very positive outlook for the business-a very bright future. Expect to continue to see RIG repurchase shares-especially if price weakness continues-fundamentals haven't changed. RIG customers have multi-year plans causing lengthening contract terms-they are not driven by short term fluctuations in crude price. RIG's margins will be protected by cost-escalation contract provisions. RIG stressed its competitive advantage is deepwater expertise. RIG has drilled 95% of all 5,000ft and up drilling projects. 70% of RIG's fleet 3,000ft or more-highest proportion in the world. Greatest challenge facing RIG-continuing to find trained professionals. A silver lining though-the greatest constraint to newbuilds(supply) is finding people to manage the rigs. This should lengthen the cycle even more. Dayrate on new Chevron contract-$205,000 per day. Dayrate on recent Unocal contract-$204,000 per day. Overall- very confident and upbeat.

To: Czechsinthemail who wrote (11069)	2/9/1998 10:37:00 PM
From: John Carpenter	Respond to of 95453

More specific points on RIG conference call: Although labor costs(65% of RIG's costs) are rising 10% a year and drill pipe costs are rising in the mid to high single digits, RIG's cost escalation contract provisions will be fully adequate to protect margins. As FGII fans already know, the shipyard business is very strong. Shipyards are in some cases turning away business-the wait for a new semi is now well over three years. The challenge will be in getting qualified people to manage the rigs. Some of the new supply and conversion rigs are not of the best quality-RIG doesn't feel that much competition in the higher end business it has more experience than its competitors(better trained people and better quality rigs). RIG has $105,000,000 left to spend on share repurchase. They will be buying, particularly if the shares remain depressed.