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

To: D. K. G. who wrote (18500)	4/8/1998 7:52:00 PM
From: Czechsinthemail	Read Replies (3) \| Respond to of 95453

Denis, MDCO is a predominantly shallow offshore driller--more so than RIG, DO or NE. A more comparable company would be ESV. In terms of differences, ESV carries more debt and is a significantly larger company. MDCO carries a higher trailing PE and its near-term earnings forecasts are for a somewhat lower rate of growth. One other factor is that MDCO is frequently discussed as a possible acquisition target, which may explain its somewhat higher PE. If you are a long time lurker here, you probably know that I think ESV is a better value, particularly at current prices. Apart from its merger prospects, I think MDCO has a less favorable risk/reward situation compared with ESV. That being said, like virtually all the drillers, it is enormously undervalued compared with the DJIA, S&P 500, tech stocks, etc. both in terms of lower price and higher growth. Baird