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

To: marc chatman who wrote (13161)	3/1/1998 7:53:00 AM
From: Thean	Respond to of 95453

Marc, with existing clients in Venezuela and with the pubic knowledge of no cutback over the "next ten years" in theory should help CDG. In fact, their past 4-5 quarterly earnings have more consitently beaten its peers (almost almost above expectation and sometime big) but it still commands the lowest PE. The lowest PE among offshores is especially obvious in a down market like what we have had recently. During its recent peak in Oct, it commands relatively high PE versus its peers. Which leads one to wonder about many things - but one thing that stands out that I would use to characterize CDG is its high beta versus peers. When I look up CDG quote, I make that connection immediately. Unless they hedge against foreign currency, their earning should not be meaningfully impacted by currency fluctuation. Doesn't look like they do 100% hedge. Being a shallow water drillers in GOM and own 11 land rigs in Venezuela is probably not the best thing in the world for CDG right now. Venezuela is a country with many thugs. I don't know if it's as bad as Columbia but if you live in Venezuela you expect your cars to be carjacked and bullets to fly over your heads when you drive through towns.