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

To: waverider who wrote (18758)	4/11/1998 9:04:00 AM
From: marc chatman	Respond to of 95453

I appreciate all the comments posters have made regarding the Simmons report. I respect your opinions. The consensus here seems to be Simmons is just making assumptions on Q2 rig rates without hard data to back themselves up. So I would guess that most of you feel as well that with demand for rigs remaining strong, the drillers aren't just rolling over and agreeing to 20% dayrate cuts on their premium jack-ups. If the situation were otherwise, I would have to evaluate my reasons for investing in this sector. By the way, nobody answered my question as to what Simmons meant by "replacement cost earnings assumptions." Since I've done my share of financial analysis, I'm a bit embarrassed to admit I've never heard of this concept.