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: Thomas J Pittman who wrote (28178)	8/23/1998 12:03:00 AM
From: Elmer	Respond to of 95453

IMHO, here is a pure Graham & Dodd value play right here in the oil patch: NSS: (Current Assets + LT Investments (Govt' Bonds) - Current Liabilities - LT Liabilities)/Diluted Shares Outstanding = $6.04 and the stock price is $6.63. Therefore, you are essentially buying $5.75 in book value per share worth of Net Property, Plant, & Equip. and Other LT Assets for a whopping $.59 per share. Even if you were to further give the book value of inventories a 50% haircut, you could still buy $5.75 of LT assets for under $2.00 per share. Problem is that unless it is bought out at a premium for cash, one may have to wait a while on this one moving up since OCTG companies usually lag on the way up and lead on the way down. However, it is a way of playing the sector with more relative downside cushion. Good Luck to All, Elmer