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Gold/Mining/Energy : FLC Falcon Drilling -- Ignore unavailable to you. Want to Upgrade?

To: diana g who wrote (37)	2/27/1998 12:35:00 PM
From: mph	Respond to of 461

I got a response to my email from IR. Earnings may be announced on March 6 or early the following week. As to my question re company specific problems, the answer was "We may be under a little more pressure relative to our peers due to the concern over 4th Q 1997 earnings which are going to look pretty bad due to merger expenses." Obviously earnings is the problem for the extreme weakness in FLC. There will be probably be more, IMHO. mph

To: diana g who wrote (37)	2/27/1998 1:16:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 461

diana, In addition to the possibility of reduced earnings due to merger expenses as mph pointed out, FLC may be vulnerable to a revaluation based on the composition of its fleet. While it has a large number of deep drilling floaters, much of its fleet is engaged in transition zone and shallow water drilling: rbfalcon.com Since most of the shallow drillers trade at lower PE's, some investors may be rethinking FLC's multiple compared with RIG, for example, which has a higher percentage of its fleet in deep-drilling floating rigs. Does anyone have First Call estimates for FLC? I saw the Zacks consensus for 1998 is $2.19, but there was no estimate for next year. good luck, Baird