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Non-Tech : Hvide Marine HMAR - High Growth, Undervalued -- Ignore unavailable to you. Want to Upgrade?

To: SIer formerly known as Joe B. who wrote (376)	5/6/1998 3:08:00 PM
From: Grommit	Read Replies (1) \| Respond to of 547

cc notes -- Not much to report. No slowdown in demand and dayrates are holding firm. The company sees no weakening in demand in the GOM. If there is future weakening in the GOM (which again -- they do not foresee) they see it affecting the lower tier ships (others) and not the high quality ships (HMAR). However they sounded equivocal about the Atlantic region. Had significant maintenance downtime due to new acquisitons. Said the demand softness was mainly weather related. Expect util to improve and it already has in the area. From 74% in the qtr to over 80% now. International rates are up considerably -- they attribute much of this due to equip upgrades and getting a higher class of customer. Utilization expected to improve during the year and they are comfortable with consensus estimates for the year at $2.24 They desire debt ratio to be lower but will not issuing stock consider it until stock price is "north of $30". Expect the present on going run rate of revenue to be $100 million per quarter. Not bad since the qtr was $86 million. My calculation -- $2.24 EPS less .43 for this qtr, leaves a run rate of .60 EPS per qtr for the remaining three quatrers. Revenue 1998 - $386 million fsct (with the $100 million run rate) 1997 - $210 million actual 1996 - $109 million actual EPS 1998 - $2.24 comfortable with this projection 1997 - $1.75 actual 28% increase What kind of a PE does this company deserve? Multiply that times the $1.80 trailing EPS and buy some stock. Or multiply it times the $2.24 in 3 quarters...