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To: SliderOnTheBlack who wrote (25580)	7/13/1998 11:57:00 AM
From: marc chatman	Read Replies (1) \| Respond to of 95453

Slider, it's hard to argue against your point that these stocks are at ridiculous levels and are screaming buys for anyone with a long term perspective. But it was hard to argue against it last week, when some stocks were 20% higher, or the week before, when they were higher still, etc. I think most investors have had enough, or they see no reason to buy now when they think the stocks will be cheaper tomorrow or the next day, or they will be happier buying on the way up, assuming that day comes. On any given day, I fall into all three categories.

To: SliderOnTheBlack who wrote (25580)	7/13/1998 12:03:00 PM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Reality Check !!!! from Rowan's release; On revenues of $204.2 million, the Company produced net income of $44.4 million, or $.50 per diluted share, during the second quarter of 1998, compared to revenues of $164.8 million and net income of $40.6 million, or $.46 per share, for the same quarter of 1997. ''C. R. Palmer, Chairman and Chief Executive Officer, commented, ''The financial results were a record for the second quarter. The average day rate for the Company's offshore rigs increased to $65,600 during the second quarter of 1998, a $3,600, or 6% increase over the first quarter of 1998 and a $15,600, or 31% increase over the second quarter of 1997. '' I have never been more confident about the long- term future for Rowan. I just wish the future would hurry!'' ************ missed estimates by 10% .50 versus .55; - only thing they are guilty of, is not directing analyst estimates downward enough... a 10 % increase in earnings and a 25% increase in revenues !!!!!!!!!!!! ...read these numbers; if a damn bank, retail store etc. had these same numbers would they be down to single digit PE's or down 30% in a month !!!??? ....I rest my case.

To: SliderOnTheBlack who wrote (25580)	7/13/1998 1:17:00 PM
From: larry	Respond to of 95453

I, of course, agree with what you said. However, the sharp drop in the price of these issues is quite simple. There are more sellers than buyers so that supply is greater than demand. I have traded FGIi, GIFI, and EVI before and made some nice gains. At current level, no on can argue that it's not a screaming buy. However, WHEN YOU FIND THAT YOU CAN ALWAYS BUY THESE ISSUES AT A CHEAPER PRICE THE FOLLOWING DAY, THAT SCARED AWAY THE BUYERS. To make things worse, lots of these issues have technically broken down. For example, EVI is making 52 week low every day and technically I am not sure where the next support level is. FGII should find some support at 22-23, if not 18-19. The really scary thing about these issues is that another 25-30% haircut is possible if any one of those miss quarters. Think about FGII. If this dude reports a bad quarter before the oil price rebounds, it will sink to low teens in a hurry. So my advice to you is not to average down on your margin. It's just way too dangerous. Also why not diversity your portfolio with some tech issues? MSFT, DELL, LU, CSCO, and even AOL, YHOO! are sure winners. Buy these issues one month before they announce earnings and sell them at high, then buy back on a mini correction. In this way, you can outperform any market index by a wide margin. good luck, larry! I still love FGII and GIFI, but will buy them when there is less cloud around them.