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Gold/Mining/Energy : Trico Marine Services (TMAR) -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (470)	6/22/1998 8:41:00 PM
From: Stephen L. Smith	Read Replies (1) \| Respond to of 1153

A lot of selling pressure on this stock with huge increase in volume. Who is selling, and why???

To: Grommit who wrote (470)	6/23/1998 8:10:00 AM
From: D.J.Smyth	Read Replies (1) \| Respond to of 1153

<<What did you get for dayrates?>> he stated $7200 to $7700 for most vessels. TMAR stated they were getting a slightly higher figure of $7500 to $8000. Green stated that the increased selling was probably due to a rumor that had spread throughout the street that day rates were dropping to $4500. this is not right since most of the contracts in the gulf run for another year or two at the current rates and new contracts being established are in the $7000 range. the replacement cost of operating a new vessel is $6000 to $6800, not including fuel and labor. no one can operate a new vessel in the range of $4500 - they simply won't run - why loose $1500 per day simply to keep up utilization? they won't do it. you can operate an older vessel at $4500 , but there is a limited supply of older vessels capable of operating at $4500. the limited supply (relative to current demand) would automatically push rates back up above the replacement cost + fuel/labor for operation. i don't know where the large volume is coming from unless someone is spreading disinformation. there is not enough new boats entering the market for the next two years to make a significant difference in the day rate drop, so who is spreading this $4500? it was in an analysts report, but the analyst was making hypothetical comments. he saw no possibility of day rates dropping this low. he stated day rates would have to be at $4500 to logically justify a TMAR stock price of $15 1/2. Now we have TMAR at $13 1/3 and day rates still above $7200. It makes no sense other than stock price engineering by a few large holders. if the price continues at this range, we'll probably here a "stock buy back plan" as other oil service companies are doing. they're all "purposefully" talking their stocks down for buy-backs.