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

To: Donald L. Dominicci who wrote (59)	3/14/1998 10:38:00 AM
From: diana g	Read Replies (4) \| Respond to of 461

Re:" Why does it hold the high analyst rating and still trade like the dog of the sector?????" Don, I don't want to try to set myself up as an expert, but I'll tell you MVVHO. I think the working-out of the combination of R + B and FLC is the answer. The possibilities of trouble from this cloud the future of FLC, additively depressing the price in a time of generally depressed prices in the sector. Will there be problems integrating the companies? Will some unexpected difficulty emerge? Etc. Those who are buying in the sector and are choosing between, say, NE and FLC see this as extra risk they don't need. Those who are selling part of their holdings in the sector see it as a reason to sell their FLC and hold their NE, and/or buy some RIG. Many see the relatively poor performance of FLC and think "something must be up" and that someone (who knows something they don't) is selling. Add in the high volume of recent weeks--a lot of shares changing hands; A lot of these decisions being made-- and here we are! Remember how FLC outperformed a little while back? --- "mph WHAT happened today!!!!! That is the best move I have seen in many moons. It was on good volume and better than the sectors move." ----- Don, that's a quote from you on Mar 3. I think when the sector turns around FLC will, as the merger is digested, outperform over the long term. In the short term there may be lower prices-- maybe much lower-- as the Saudis overwhelm storage capacity to make their point, but I feel moderately confident that FLC is not going to sink into the sea. Buying FLC at these prices seems like a good idea to me. If it gets cheaper it will be an even better idea, IMHO. On the other hand, it could be that the large barge fleet is seen as a problem. Whether or not it might be, and whether the market sees it as such (two separate issues), I am unable to address out of ignorance. Again, I'm no stock maven. I'm just a simple grrl who knows almost nothing about drilling. Six months ago I thought the stock market was where they sold cattle and hogs. I'm just trying to figure this stuff out as I go along. I welcome criticism and correction. best regards, diana