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: Harold S. who wrote (31227)	10/29/1998 12:48:00 AM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

O/T Harold; i have just ''1'' opinion - keyword being -opinion. As I mentioned, MAVK is not in my closely followed list of stocks. Fundamentally it is undoubtedly cheap and a good value. It would be hard to argue that it will not outperform the overall market for a longterm hold. However; I just feel that many other Oilpatch stocks have more dynamic growth stories and will move better short & longterm. I couldn't find fault with buying & holding allmost anything here longterm... HLX is a very interesting company. If you go back and look at the selloff that started in late May, June & July; Halter held very well; for a longtime it was on a percentage basis - one of the ''least down'' stocks in the Oilpatch. It had excellent analyst reviews. DLJ had it as their single best midcap stock at one time. They have a broadly diverse business with energy only a part of their business. GULFPORT, Miss.--(BUSINESS WIRE)--Oct. 19, 1998--Halter Marine Group, Inc. (AMEX: HLX - news) reported net income for the quarter ended September 30, 1998 of $6.7 million, or $0.23 per share, diluted, on revenue of $270.8 million. This compares to net income of $7.8 million, or $0.27 per share, diluted, on revenue of $151.2 million in the second quarter of fiscal 1998. BOTTOM LINE: They have grown revenues by 60% in a soft year in the Oilpatch. They are very profitable here and saw increasing margins. This company can & will (imho) dramatically reduce costs here shortly, plagued by some over-runs etc. They have a backlog of $857 Million consisting of the following business segments: Vessels, $392 million or 46%; Rigs, $397 million or 46%; and Engineered Products, $68 million or 8%. HLX has a substantial backlog of $857 Million versus Total Sales of $850 Million this past year. HLX is selling at 0.29 of Sales ! Has allmost $40 Million in cash at a market cap of $238 Million. Lots of capacity than can be highly leveraged in any upturn here. Their back log is ''clean & solid'' recently down from $950 Million or so; as many Oilpatch Co's have had some reductions in backlogs; HLX's is still allmost 1 years sales ! For the six months ended September 30, 1998, the company reported net income of $12.8 million, or $0.44 per share, diluted, on revenue of $480.6 million. For the comparable 1997 period Halter Marine Group reported net income of $13.2 million, or $0.46 per share, diluted, on revenue of $300.2 million. Current Backlog: Vessels Rigs Engineering Total Backlog: Government $122. $ -- $ -- $122.6 Commercial 43.0 -- -- 43.0 Energy 204.1 396.8 -- 600.9 Other 22.2 - 68.4 90.6 ------- ----- --------- ----- Total backlog $391.9 $396.8 $68.4 $857.1 ------- ----- --------- ----- ------- ----- --------- ----- PS: a great strong point in my opinion; is that these guys have been buying their stock with strong Insider Buying all year long, Just not recently during the Oilpatch Sector blowoff. ie: these guys thought their stock was cheap @ $20-40 This; is Insider buying, not nickel & dime - $3,4,5,-$10,000 buys; but multiple $100,000 + Insider Buys: 9 buys over $150,000 in 5 different months... biz.yahoo.com HLX has seen someone exiting a large position here; it was held by many non-energy funds and is most likely going through tax loss selling into strength here... Today on most every downtick, there were buys; I saw a series of 2-5-10,000 share buys on any downtick at mid morning.This stock is basing very strong on a technical basis; it will move... What I like is that, HLX is one of the few Oilpatch stocks left that has NOT yet retraced its September High from the initial selloff. At $8 now; it can go $5-6 ( + 60-75%) returning to the $13-14 levels of September; I firmly believe it will. Do your own research; I am obviously Long HLX.