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Gold/Mining/Energy : PRUDENTIAL STEEL (tse:PTS) -- Ignore unavailable to you. Want to Upgrade?

To: Robert who wrote (23)	4/1/1998 7:55:00 PM
From: stockinAmajor	Respond to of 69

I do have very recent earnings predictions and analysts targets which I will be glad to share with you, unfortunately I do not have them with me at the moment. I'll post the highlights tomorrow. As far as Asia is concerned they have little if any exposure as far as I can recall but I'll review the details again tomorrow. It looks to me that the fall in oil prices and the selling of oil service companies caused an unjustified decline in PTS . More to follow.......

To: Robert who wrote (23)	4/1/1998 11:26:00 PM
From: Well-Informed	Read Replies (1) \| Respond to of 69

Prudential Steel is a first class company and investment. Unfortunately, I believe many investors see "steel" in the name and value it more as a steel company. Even before the multiple contraction in late 1997 for oil services companies, PTS traded at a discount to other companies. The fact is, PTS does not make steel - it purchases it and manufactures oil services tubing and some industrial tubing. Lower steel prices mean higher profit margins. Take a look at their last annual report and notice the steady decline in their costs in making their product. Based on analysts' current P/E targets for oil services companies, PTS has a 1 year target of $22-25 by Peter's & Co., RBC Dominion Securities, and Midland Walwyn. If the industry continues to see more activity in mergers and acquisitions, the P/E for the group could expand. This company has a consistent record of reporting higher sales and earnings than analysts have expected. It has recently increased its capacity at its Calgary Mill and it is currently working on a mill in Washington State to supply the growing gas exploration in the Rockies. This stock has completed a double bottom, with the MACD and On Balance Volume indicating there is institutional interest in this stock. Its current break above $16 indicates that the stock could move quickly into the $18-$20 range. Let's not forget that U.S. companies such as Maverick Tubing (MAVK) and LoneStar (LSS) could be interested in acquiring PTS to get a foot hold into the Western Canadian Oil and Gas exploration. Never count out Ipsco Steel which focuses on large diameter pipeline tubing. Stay Tuned.