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To: Lucretius who wrote (1612)	8/6/1998 9:16:00 PM
From: bw	Respond to of 14427

An interesting post from SD w/ Mavis summary article on GLM: Message 5433314 This article really seems to bring home the severity of the OS problems. If GLM blew it on their day-rates received/lease pmts.due, then what does that mean for a company like NE that is paying [probably too much] to upgrade its equipment? How about all the newbuilds that are in contract at too high a price to justify with the now reduced day-rate structure? Some of these contracts will have to be either adjusted or eliminated in the current climate of reduced spending from the "weakened" majors...FGII may have the backlogs now, but are they sustainable backlogs? Deserve PE's in the 30-40s again? And as you said LT, this stuff is really just beginning to hit the fan. The downside from here is rather limited, however, by the devastation that has already be sustained by the patch. What will happen is that more estimates will be lowered and investors will remain reluctant to part with cash in an already dizzy and uncertain market...I think that we're doing just fine. <g> PS..How about all of Palmer's Jackup newbuilds at RDC being built on credit [without contracts] that were the big gamble last year? Ouch....