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.

Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (2971)	9/11/1998 12:01:00 PM
From: gizelle otero	Read Replies (1) \| Respond to of 59879

Several "Good News" Items for Global Marine: 1. Wall Street Journal reported several insiders are buying back their own company shares in the oil services sector. GLM was not specifically mentioned, but remember the reports are weeks old before they come out. We probably have insiders buying now in GLM stock. 2. The stock itself confirmed it's lows set earlier last month yesterday with a great "snapback rally" from $10.625 to almost $12.00/share on a very down stock market. That opened a few technician's eyes, I'm sure. 3. The level of imported oil as a % of US consumption reached a 25 year high this month. It looks like the US has forgotten the lessons learned during the last Arab (OPEC) oil embargo that caused lines and rationing at gas stations. Look for either a ramp up in our strategic oil reserve or increased OPEC power in pricing as a result. Both would be bullish for GLM shares. 4. Nigerian and Russian problems in exporting oil may combine with an unusually cold winter to force very much higher oil prices in the next 6 months. While Fall demand is expected to be weak, if Russia cannot get oil out of the ports before the freeze, we may be in for a run to $20.00 on West Texas Intermediate Crude by January. This would open a new round of exploration equipment, cause jack rig day rates (49% of GLM revenues) to rise, and especially raise deep water rig day rates (51% of GLM revenues). These four items and a fifth "wildcard" are why I am so confident that GLM shares will hit price targets out 6-months, 12-months, and two years to make us all very rich. The "wildcard" is how many margined commodity players are currently short oil contracts on the CBOE because of Asian problems. If those guys get scared by the recent run-up in oil prices, we will have a wild swing to the upside. Remember, it would be foolish (in my opinion) to sell GLM stock below $20.00/share right now. When (not if) Asia turns around, oil will explode to the upside and GLM stock tracks oil about 90% of the time. GLM earnings are set to increase in 1998, 1999, and in 2000. P/E's for the industry are ridiculously and historically low. They are at only 30-40% of S&P P/E's. That situation will not last long. Looking for a bargain? Buy GLM and hold it until the P/E gets to the historical level of 16-20. Only then should you look elsewhere for a better stock. ------ Previous