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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (9119)	9/27/1998 4:51:00 PM
From: Ditchdigger	Read Replies (2) \| Respond to of 29382

Max, Trascoastal Marine sound like a neat little company,the operative word being little. While they are profitable and growing by acquisition, a few things should be considered for our special situation search. "The Company's revenues are primarily derived from providing services related to pipeline installation and repair, hydrostatic testing and commissioning of pipelines, and fabrication and refurbishment of offshore drilling rigs, barge drilling rigs and structural components of fixed platforms. To a lesser extent, the Company generates revenues from (1) the manufacture and sale of amphibious undercarriages for marine construction equipment used in stump-studded swamp terrain and (2) onshore environmental site assessments and on-site remediation of petroleum-contaminated areas." "In the fourth quarter of 1997 revenues declined towards the end of the quarter because of inclement weather and the normal slow down in marine construction activity which occurs in December." "Most of the Company's services are provided under fixed-priced contracts and are generally completed within one year." "Dickson derived approximately 75% of its revenue from international projects in 1997. In addition to its headquarters and fabrication yard in New Orleans, Louisiana, the company maintains offices in California, Angola, Nigeria and Venezuela." They are a sub-division of TCMS I guess what I'm trying to say is,IMO these guys just aren't large enough to really take advantage of a bad situation. They probably wouldn't have the working capitol to handle much work on a hurry up schedule,they are more geared to contract work, typically with payments set to a schedule and may have budgeted for those schedules.Earnings may begin to lag and become disappointing " Historically, the Founding Companies have performed a substantial portion of their services during the period from March through November, and, therefore, a disproportionate portion of their contract revenues, gross profit and net income generally has been earned during the second and third quarters of the calendar year. Because of this seasonality, the Company's future full year results are not likely to be direct multiple of any particular quarter or combination of quarters." But it sounds like a great company, with an excellent growth rate.We have to think larger,IMO They only had $80MM in revenues for the first 6 months of the year,which is great,but we need clout..DD