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Gold/Mining/Energy : Trico Marine Services (TMAR) -- Ignore unavailable to you. Want to Upgrade?

To: Mark who wrote (32)	2/19/1998 5:04:00 PM
From: Don Westermeyer	Read Replies (1) \| Respond to of 1153

I guess the big worry is that oil prices remain low long enough that they quit building rigs and with more boats that would screw over rates big time. TMAR does get (I think) 70% of its revenue from long term contracts (20 months) so there is some cushion there. They have additional capacity coming on line also over the next year so that helps, too. Short term I'm afraid I don't really see any big upside to the stock price due to oil worries and general fear of the sector. But if you can look out to the time when oil start to rise again this is a very attractive stock. If the volatility bothers you (and when a stock nose-dives like this it should bother you!), sell a few out of the money covered calls. I plan on writing a few calls myself when the bombs start dropping and oil prices spike up for the day. One may have to wait until next year to get some relief from low oil prices, though you can bet OPEC is getting worried about them now, too. And - Hey, what company doesn't have to worry about competition?

To: Mark who wrote (32)	2/20/1998 1:10:00 AM
From: Alex Greenland	Respond to of 1153

<I would also suspect that the Saevic aquisition gives them an established presence in the North Sea. If things get too hot in the Gulf, it presumably gives them the option to move vessels to the N. Sea ? (Assuming of course that the problem is localised).> The North Sea is considered a harsh environment and I dont know if the ships could be sent there without some kind of upgrade. Dayrates are also 14k as opposed to 8k in GOM. JMO Alex G. PS check out HMAR same business and same problem as TMAR, only difference is that half the fleet is located outside of the GOM.