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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (3694)	3/30/1998 2:43:00 PM
From: Jack Be Quick	Respond to of 78652

Jeffrey, re:>>The P/E of HMAR is unlikely to get to be (your) "half" of a driller's P/E<< Being a number thing, I suppose it depends a lot on what numbers you choose to use and how much you decide to argue about it-g-; but, I think that you can make a strong case that HMAR's p/e is already at fire sale prices compared to the drilling group. On a trailing basis, you could compare RIG trading at $53 w/ a ttm p/e of 39 to HMAR at $18 with a ttm p/e of 11.4. On a forward basis, after adjusting for the .14 shortfall in estimates announced today, HMAR at $18 with a Zack's est. for '98 of $2.69, compares to NE at $32 with a '98 est. of $1.95 (and you can make a strong case, imo, that NE is a good value play.) Just a thought. John