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

To: VLAD who wrote (26526)	7/25/1998 4:56:00 PM
From: Dwight E. Karlsen	Read Replies (2) \| Respond to of 95453

they're certainly headed there, to book value. CDG, according to Yahoo, on a Per Share basis: Book Value (mrq) $14.55. CDG is at what, $20-$22?

To: VLAD who wrote (26526)	7/26/1998 1:47:00 PM
From: Big Dog	Read Replies (1) \| Respond to of 95453

VLADimer -- Book value has little or nothing to do with the market value of assets. I think that snippet from the Fool board has some validity. After all, there is nothing more to a driller than its assets. If you and I had the same assets today, we could easily create a company that could equally compete with the 30-yr old driller. And such assets are such a huge part of the business, it may make sense to value the company based on the assets. In fact, you old timers may recall back in February or so, I suggested to Thean that maybe a good indicator of future driller prices would be a "Used Offshore Rig Value Index". Such an index would be impossible due to the lack of transactions. And as it turns out, the stock prices move faster than rig prices. So that takes us back to the bottom line...oil prices. Higher oil prices = more work for rigs = higher day rates = higher rig values = higher stock prices. It's really simple, huh? As someone who deals in the market values of rigs every day, I can say we are in a period of transisiton. There are basically zero willing sellers, and the willing buyers will not pay as much today as a month or two ago. Result: stalemate. The bid/ask spread is quite large on offshore drilling rigs at this time. Maybe this is a good newsletter topic for next week. big jump.to Ps. Be sure and check out some new charts on the portfolio companies at the web site. Plus the AIM Model gave us about 12 buys this past week. New GTC details are in place. (Thanks JZGALT !)