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

To: dougjn who wrote (19943)	4/22/1998 7:18:00 AM
From: JZGalt	Respond to of 95453

So what am I missing? The first thing you are missing is rigs being converted to deep water operations. 6th conversion announced yesterday. 5 to FGII. biz.yahoo.com Remember what BigDog is saying. Rigs cannot be had unless you are willing to start paying way too much. I like to keep this little graphic in mind when thinking about this sector: geocities.com It doesn't take into account the entire world, but you should be able to see the trend. The ability for NE to "add capacity" is reflected in this set of numbers. These are Zack's eps growth rate for next 5 years: RIG.....34.5% NE......33.2% FLC.....28.7% DO......28.5% ESV.....23.8% GLM.....22.8% CDG.....20.0% Now looking out 5 years on anything is BS and these numbers come from the same analysts who were telling us to be cautious in March because crude could fall to below $10/bbl. I'd just rather be at the top of the list than the bottom. [CDG's number look too low however]. For long term growth I'd rather own RIG than NE *except* that RIG trades at a higher p/e on forward earnings than NE does. RIG is trading at a forward p/e of 19 vs. 17 for NE. The other thing you are missing is management. NE appears to be very good. Selling off the land based operations last year when they commanded a high price and allocating that capital towards upgrading toward the deeper water capabilities that are in the most demand for the forseeable future. Now. Why do you think RIG, DO and FLC all look undervalued by 50%?

To: dougjn who wrote (19943)	4/22/1998 9:41:00 AM
From: waverider	Respond to of 95453

Doug man...my intitial FGII choice had to do with market psychology and momentum, not the old numbers (yes I do numbers, and windows:). It has been one of the strongest stocks in our sector and stocks that go up tend to keep doing so. However, I switched after checking out the charts a bit more because NE has less to go...and is a large cap which is attracting fund money. Isn't this fun? It wasn't long ago that we were worrying about new lows, not new highs. Rick Hydrocarbon