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To: Big Dog who wrote (17858)	4/3/1998 8:31:00 AM
From: Harold S.	Read Replies (2) \| Respond to of 95453

I agree. UTI announced a buyback program with the last earnings announcement and I hope others do too as we go into the earnings season.

To: Big Dog who wrote (17858)	4/3/1998 9:46:00 AM
From: diana g	Read Replies (2) \| Respond to of 95453

Re: FLC loss of riser, string, BOP Hi Uncle Big, You wrote:"That's true Paul, but don't forget the risk involved. What if day rates slip. Or what if they only get 60% utilization. What if they lose a riser, string and BOP and it takes 6 months to get a new one and they don't have revenue for that period? Anything can and will happen." You didn't say FLC, but the shoe fits. Will it take six months, or are you just using the possibility as an example to make your point? What can you tell us about the ramifications of this incident? <<Off Topic>>> Looking forward to pictures of new spread. Will there be raccoons? best regards, diana

To: Big Dog who wrote (17858)	4/3/1998 12:14:00 PM
From: Chuzzlewit	Respond to of 95453

Big Dog, are those bearish words I hear? In economic terms, a share buy-back is really a tax-advantaged dividend. Why? because it converts ordinary income to capital gains. So the question you need to ask yourself is whether you prefer the dividend to reinvestment in the business. If the bearish possibilities you allude to were serious concerns of mine, I'd be investing in a different segment. This business is very different than Dell, which is relatively labor intensive. That means that Dell can initiate rapid expansion and a share buy-back program simultaneously. But oil rigs are capital intensive, and existing debt levels preclude very rapid expansion. So essentially, these companies are forced into a capital rationing mode. Remember, I'm the guy who asked how we could tell when the party's going to end. And I'm also the guy that pointed out that things could get very ugly if we have overcapacity (as occurred in the dd's). And I think you're the guy that said to watch the second-hand rig market. You seem to be in an excellent position to know what's going on. Do you see the party ending in the next two or three years? Of course there's another possibility -- use the cash to consolidate. Fewer players lessens the chance of overbuilding and at the same time is accretive to earnings. I would be happy with that also. Regards, Paul