Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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

To: Broken_Clock who wrote (16533)	3/25/1998 6:31:00 PM
From: waverider	Read Replies (1) \| Respond to of 95453

CDG vs. ESV Same business it seems...so the numbers: ESV has a market cap about 6x that of CDG ESV has a .10/share dividend (mutual funds like that)/CDG has none Total Debt/Equity: ESV .37 CDG 1.14 Profit Margin: ESV 29% CDG 16% PE on ESV about 17 vs. 13 on CDG Baird, any speculation as to the relative future performance between the two?

To: Broken_Clock who wrote (16533)	3/25/1998 7:05:00 PM
From: marc chatman	Read Replies (1) \| Respond to of 95453

You are right that there is a limit as to how much debt a company can reasonably take on; but at these low stock prices, I hate to see a company issue equity to finance expansion. Another issue which I don't know much about is the extent to which a driller (particularly the deep water drillers) can finance the construction of a rig against the cash flow from a long-term drilling contract. Didn't DO or one of the drillers do just that a few weeks ago? I don't know how much of the financing was covered by that contract; I think the contract term was for 30 months.