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

To: waverider who wrote (23566)	6/6/1998 4:08:00 PM
From: Big Dog	Respond to of 95453

DH, re HP -- They own a very large portion of ATW. This is why ATW are such conservative kind of guys. FYI -- Jefferies is very bullish on SDC with a target of $60 over 12 months (price now is about 35 I think) Points they make: 1. Zero debt, strong balance sheet. 2. The ONLY pure international play -- 100% of revenue from outside of GOM. 3. Lengthy contract backlog should insulate from near term weakness. (This is due to all the international, longer term contracts as opposed to shorter GOM contracts.) 4. Recent contracts at very attractive day rates. 5. Trading at "unwarranted discount to its peers". 27% discount to peers despite superior revenue visibility. 6. The fragmented market (of rig owners) should present opportunity for SDC to expand. Dog's comments: SDC is a company that does things first class or not at all. Kuwait is a large owner and this worries some on wall street...what if they start selling? But then again, what if Fidelity starts selling the others...same difference in my book. SDC doesn't get much attention, and I don't know why. If there is a sleeper, this is it...along with PDE. SDC = pure quality and a conservative play on this sector. Therefore SDC gets a Five Bark rating. (No wag due to the lack of immediate potential to soar.) big barker