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

To: diana g who wrote (58)	3/14/1998 12:13:00 AM
From: Donald L. Dominicci	Read Replies (1) \| Respond to of 461

Diana Fundamently this stock looks awesome but the price action concerns me big time!!! With the current earnings projections and growth projections, FLC should be in the high $30s. Why does it hold the high analyst rating and still trade like the dog of the sector????? Good luck Don

To: diana g who wrote (58)	3/15/1998 8:39:00 PM
From: Czechsinthemail	Respond to of 461

diana, I agree with you that FLC is both relatively and absolutely undervalued at current levels. I've also been buying in recently. Some of the weakness in FLC may be related to funds that owned both RB and FLC before the merger trimming their holdings in the combined company. It's also tainted by the charges for merger expenses and their drilling program that simply look bad to the casual observer. But looking forward, FLC's estimated earnings growth for this quarter remains >100%, and the company can look forward to significant additions to its deepwater drilling fleet later in the year. Beyond that, if there are signs of strengthening oil prices, FLC should do better than most of the other deepwater-intensive companies like RIG, DO, and NE because of the strengthened position of its shallow-water fleet. I think time will make your decision to buy FLC at current prices look very smart. regards, Baird