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

To: Gottfried who wrote (1069)	4/16/1998 11:00:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 2005

GM, The earnings report is still strong, and Thorne simply acknowledged the news that has already been out about some softening in the Gulf. If you take that into consideration, it means ESV may have some slowing of growth over the next quarter or two if oil prices remain down. If oil prices rise and drilling demand with it, ESV's growth will be much higher. Long term, I think that's the way to bet. Compare it with DO which announced and also beat estimates, but with a considerably lower growth rate. I think the market is currently overvaluing the predictability of deep drillers and undervaluing the jackup drillers like ESV. Given trailing 12 month earnings of $2.00, ESV is a bargain. In the short term, it may trade with the negative sentiment around oil price fears. But eventually the value will draw investors to it. Baird