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Gold/Mining/Energy : Ensco International Inc. (ESV) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (963)	3/31/1998 1:25:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 2005

Paul, I agree with everything you say in terms of capital intensive barriers to entry into the industry- But! Note that ESV has paid down its debt to the point where they will only require predominantly supplies and maintenance expenses to maintain their rig/vessel fleet-i.e., unless ESV voluntarily chooses to build a new rig, then they have only modest to minimum capital costs in order to conduct business. Thus ESV offers the best of both worlds- it is in a capital intensive industry but its own capital requirements have shrunk significantly....Thus profit margins should not be as subject to volumes of cash flow as in say semi equipment makers,etc.... Sincerely, Doug F.