Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SliderOnTheBlack who wrote (27818)	8/15/1998 12:39:00 PM
From: John Doyle	Respond to of 95453

Just to put some additional perspective on valuations... I just got a table of comparative stats for the offshore drilling group, published by Jefferies & Company. Based on prices at 8/10/98 (obviously, prices are lower now), offshore drillers as a group are trading on average as follows: Price/Earnings: 1998E P/E 8.8x 1999E P/E 6.8x Price/Cash Flow: 1998 P/CF 5.4x 1999 P/CF 4.3x Total Enterprise Value/EBITDA: 1998 TEV/EBITDA 5.3x 1999 TEV/EBITDA 4.1x It goes without saying that these multiples are low by any standard. However, even more telling is the fact that, on average, the offshore drillers are trading at 88% of Net Asset Value and 47% of Replacement Value. Does anyone know how low these companies traded, in relation to net asset value and replacement value, the last time oil prices collapsed?

To: SliderOnTheBlack who wrote (27818)	8/15/1998 1:10:00 PM
From: Amelia Carhartt	Read Replies (1) \| Respond to of 95453

Slider, The point is, you are never in the right place at the right time if you stick your head in the sand. Most successful people will tell you that being in the right place at the right time involves a lot of luck. Only idiots think it is all because they are smart. So, perseverance is the key. Gotta be out there to be in there. I must say your ability to blather has not diminished. I was only looking to pay you a compliment not get a lecture.