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

To: Tulvio Durand who wrote (25478)	7/10/1998 4:11:00 PM
From: Big Dog	Read Replies (1) \| Respond to of 95453

55 for FGII? SOLD

To: Tulvio Durand who wrote (25478)	7/10/1998 4:17:00 PM
From: marc chatman	Read Replies (1) \| Respond to of 95453

<<VRC is worth $45.>> I beg to differ. VRC is worth $17 and change -- but only if you sell it really soon.

To: Tulvio Durand who wrote (25478)	7/10/1998 4:50:00 PM
From: SliderOnTheBlack	Respond to of 95453

VRC valuation..... I am holding a small position that I bought on a dip in mid June and it's down 25% from there... I am still holding; I like their future, good backlog, good reputation in the industry etc. However I see much better opportunities to average down into or to buy outright . VRC has analyst earnings projections of only $1.17 for 1998 and $1.50 for next year = 1998 PE of almost 15 ! - not cheap and a 1999 PE of 11.67; in comparison to EVI for instance @ 1998 PE of 12.5 & 1999 PE of 9. I'll take EVI on pure value and more likely to have strong market support on a positive breakout and more liquidity. We must really analyze earnings both 1998 and 1999 estimates and compare PE's to peer's... also low debt companies are a premium on any further downside; for this reason I'm buying DO above all other drillers and CDG selectively as DO has better earnings support with the deepwater contract penetration. Today I must admit I trimmed laggards in a big way after an 8.5% drop in this sector this week. Highly leveraged companies that I love long term like BDI & HMAR are gone... I only like low debt, low cost segment leaders from here on out...like DO and also deepsea construction co's SCSWF & CXIPY are my main targets on dips along with seismic leaders PGO, GGY and VTS...the deepsea and seismic areas finally sold off and have more earnings support vs. drillers and traditional equipment/service co's - IMHO. These guys have also had numerous major contract announcements which have not moved the stocks or been factored into their valuation by the market. International deep & subsea is my #1 area . I'm beginning to see virtually no buying support without major news on the crude oil front...Unfortunately. I'm preparing for a nasty, dreary 2-3 months - holding from here; perhaps 2-3 buys on the aformentioned if I see 10-15% dip from here. This is a historic buying opportunity for those with cash; I'm holding - limited cash; don't see much upside to selling and re-entering - trying to time, what may be a ''turn on a dime'' recovery on major events...down the road.