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

To: Teddy who wrote (15767)	3/21/1998 10:20:00 AM
From: HH	Respond to of 95453

Ayatollah ROFLHAO ----NOT read below Iran's "enemies" behind oil price fall - Khamenei TEHRAN, March 21 (Reuters) - Iran's supreme leader Ayatollah Ali Khamenei on Friday blamed enemies and "uninformed friends" for plummeting oil prices that have spiralled to nine-year lows, Iran's official news agency (IRNA) said. "One such act has been the reduction in the price of oil...The plot has been truly by our enemies, but then, too, our enemies have also been aided by uninformed friends," Khamenei said in an address to the nation on the eve of Iran's new year. Iran, the third largest producer of oil after Saudi Arabia and Norway, marks its new year on March 21 faced with growing concern about sagging oil prices, the country's main source of income. Iran's main-grade Heavy hit a nine year-low last week, trading below $10 per barrel, compared to $17.15 a year ago and a 1997 high of nearly $22 a barrel. Income from oil exports make up around 80 percent of hard currency earnings and up to 40 percent of government revenue. Khamenei said these "uninformed friends...adopted wrong decisions, and of course they were aided and abetted by our enemies." Khamenei did not say who the friends or enemies were. But Iranian analysts had said Khamenei and other senior Iranian officials blame last December's Organisation of Petroleum Exporting Countries (OPEC) decision to raise its production ceiling for the plummeting oil prices. Iran is the second-largest OPEC producer after Saudi Arabia, seen as the chief architect of the OPEC quota hike. "We must cope with this situation intelligently...I wish to advise the dear Iranian nation against extravagant consumption," Khamenei was quoted as saying by IRNA. "My primary recommendation to the people this year is to be wise and economic consumers," Khamenei said, adding that government should be the prime exemplar of this "thrift." Growing dissatisfaction over the economy -- plagued by looming recession, inflation, and high unemployment -- was exacerbated by worries over the price of oil, analysts said. Iran's budget for the Iranian year 1377 (March 21, 1998-March 20, 1999) is based on a $16 per barrel. Iranian economists say the government may be forced to revise the forecast price of oil or cut spending. Khamenei attempted to dispel concerns that tighter spending and consumption could lead to economic austerity. "This is not to invite the people to any period of economic austerity. We are not compelled to do that," Khamenei said. Last week Iran's president, Mohammad Khatami, said Iran faces the new year with "a sick economy." He said Iran's economy suffered from major income disparities, a tendency towards speculative activities rather than production and over-reliance on oil exports. Local media commended Khatami for his assessment of the ills of Iran's economy but complained that the president was short on details for a cure. Basic shortages of goods and rising prices have been frequent complaints in recent weeks, Iran's media has reported. In a speech dominated by economic concerns, Khamenei also offered a ringing endorsement for President Khatami, elected last May in a landslide victory and seen as a moderate. "In my opinion one of the most important events of last year was the presidential election and the vast participation of the people in that election. Thank God they made a good choice," Khamenei said. 09:04 03-21-98 Copyright 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similiar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL.

To: Teddy who wrote (15767)	3/21/1998 10:41:00 AM
From: SJS	Respond to of 95453

I think Tom Dubois and I will admit to owning it (and paying too much for it), and I am sure others own it as well. Basically a good stock that got ahead of itself price-wise via the fervor and momentum of their IPO. Briefing.com likes it and has written it up very favorably a few times. I've posted their ideas here, as well. With you doing research and having interest, Teddy, Tom and I will be poping our "break even" champagne corks much sooner!! Regards, PS: I saw you post you're from Boston, or schooling here. Which of the dozens of schools are you attending?

To: Teddy who wrote (15767)	3/21/1998 12:19:00 PM
From: marc chatman	Respond to of 95453

Teddy, I hold both UFAB and FGII. The growth here should be remarkable as the drillers trip over themselves to get the biggest, baddest, deepest rigs. I have been accumulating UFAB in its current range (around 16 and change average). Unfortunately, my average for FGII is a couple points higher than where we are now. I think FGII is pretty good long-term value at these levels; a bit more fully valued, but they probably deserve it for all the reasons Big Dog and others have cited. FGII seems to be collecting contract after contract, so they are obviously a favorite of the drillers. The major risk there IMO would seem to be production efficiency (a la BA); but I haven't seen any evidence of a problem in their numbers (not so easy to determine, though). I don't think we will be seeing much more downside on UFAB based on the technicals, so this could be a good range to start a position. If FGII settles back to fill the gap from Thursday, I will consider adding to my position.