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

To: SargeK who wrote (32326)	12/2/1998 12:07:00 AM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 95453

SargeK re: GLBL... Good to hear from you Sarge; can't argue with FGI or GIFI here either. I like GLBL as my #1 overall pick for the following reasons. 1. Best potential return on my investment (realistically - the most bang for the buck). Traded at $14 7/16 in Sept & $10 5/8 in Oct/ representing basically a ''double'' and/or a ''triple'' to just the highs off of the Sept & Oct selloffs. Traded from $21 to $25 from April to June which is a potential ''5-bagger'' in a return to a mere historically normal $16-18 Crude Oil Price enviroment; I can wait a while for a ''proven'' 5-Bagger... 2. William Dore; CEO - in times of crisis; give me a PROVEN leader at the helm. Dore is one of the most respected CEO's by both the Street & his peers in the patch. He also is putting his money where his mouth is - ie: a cool $5 MILLION in Insider Buys last month ! ''5 Mill'' - not chump change folks... he knows this ship aint going down - not even a possibility. 3. Market Niche. Construction, pipelay, subsea work, diving, platform installation & removal. These guys will have a solid core base of '' service work'' irregardless of the price of crude (of course they will have more work with strong crude pricing...). Also they have expanded strongly into International Markets diversifying from the GOM and also have dramatically increased earnings capacity via the following acquisitions (really like the SubSea acquisition) from the Nov. 12 10 Q... <<During the second quarter of fiscal 1998, the Company completed the acquisition of certain business operations and assets of Sub Sea International, Inc. and certain of its subsidiaries (the "Sub Sea Acquisition"). The $103.8 million acquisition costs (including $1.8 million of directly related acquisition costs) came from available cash and borrowings under the Company's existing credit line. The major assets acquired in the transaction included three construction barges, four liftboats and one dive support vessel based in the United States, four support vessels based in the Middle East, and support vessels and ROVs based in the Far East and Asia Pacific. In the first quarter of fiscal 1999, the Company again added to its fleet with the acquisition of the pipelay/derrick barges DLB 332 (Teknik Perdana) and DLB 264 (Teknik Padu) from TL Marine Sdn. Bhd. These two vessels are currently in Asia Pacific. The purchase price was $47.3 million (of which $4.8 million was paid in the fourth quarter of fiscal 1998) and was funded from the Company's bank line of credit. The DLB 332 is 352 feet by 100 feet, has an 800 ton lift capacity, and can be outfitted to lay up to 60-inch diameter pipe. The DLB 264 is 400 feet by 100 feet, has an 1,100 ton lift capacity, and is capable of laying up to 60-inch diameter pipe. Both vessels have completed commitments under short-term bare boat charter agreements with Hydro Marine Services, Inc., an affiliate of J. Ray McDermott S.A., and are currently available for use in the Company's construction services work. In July 1998, the Company's barge Hercules completed its conversion to a dynamically-positioned pipelay/heavy-lift barge and returned to service to begin its first conventional pipelay project. The second phase of the upgrade of the Hercules, installation of a reel on the barge to enable it to install offshore pipelines using the reel method, is expected to occur in the fourth quarter of fiscal 1999.>> 4. Irrational market reaction to them missing the Analyst Quarterly Earnings Estimates; ie: 4 major GOM storms delayed projects... stock is oversold disproportionately to the sector and in reflection to its own internal fundamentals. 5. Solid financial condition; moderate debt, good cash position and strong bank lines with Dore's ability to bring a proven track record of riding out the storm... I like VRC & FGII as high returns here as well. The strong earnings growth stocks in great niches like CXIPY SCSWF PGO CDIS CLB are solid buys here; like VTS and my big 3 RIG RON WFT as well. DO & ESV represent strong balance sheet companies; certainly able to ride out any storms. There is still a ton of cash on the sidelines and there will be big-time profit taking in the over all market soon; and they will be looking for over sold areas to ''rotate'' into. The oilpatch should be a recipient of some strong sector rotation here soon. ''ANY" good news here on the OPEC or Crude Oil fronts will give us a ''pop.'' Not that things are rosy; but OPEC is still in strong compliance and is maintaining cuts; Worldwide demand is still increasing - all though slight. One would think that we had a 25% drop in demand in light of crude prices. We are turning the corner supply/demand-wise. This is most definitely a ''when'' and not an ''if'' equation. Patience is the keyword here... This is a ''classic'' lesson in market psychology and the herd mentality. Ask yourself a question; are we worse off, or better off; than when the International markets were crashing; Longterm Capital's exposure was an unknown, Russia was in total meltodown, Brazil as well; We didn't know what Japan would do - banking reform-wise, expatriating cash from abroad, let alone pumping $195 BILLION in liquidity Stimulus into the ''Asian Demand'' problem... Fed Cuts were an unknown, was Clinton's fiasco leading to a constitutional crisis ? What would Opec do ? .....etc. People; we have one hell of a lot more information and a lot more of the questions have been answered and/or problems eliminated than what we faced back in September. So why is the possibility of another trading run up here so heavilly discounted ? This sector is mis-priced due to a ''time value'' of money anomally; deadmoney for any time at all has been way over discounted by this market. The oilpatch is a bargain. Crude will move; all the reduced E&P activity, shut ins and OPEC cuts will take effect; let alone the return of Asian demand and normal Winter demand drawdowns... once again; most will be kicking themselves for not buying here in 6 months imho.

To: SargeK who wrote (32326)	12/5/1998 7:21:00 AM
From: SargeK	Respond to of 95453

Hey Slider, Maybe you should take another look at FIGI. When I posted msg #32327 GIFI was priced @ 7 3/8 (could have been bought at 7 1/8 after I posted). Technicals: 50 DMA Vol: 90.37 shares. 12/2 Close @ 7 1/4 Vol 159.8k shares; 12/3 Close 7 5/16 Vol 314.5k shares; 12/4 Close 9 1/16 Vol 600.8k shares traded.. UP 25 % in 3 days with increasing volume. There is a message here if you can decipher it. I suspect there will be buying opportunities in this and related issues as tax selling continues. I just happen to like FIGI (selling @ only six times next years estimated earnings) which at least temporarily appears to be moving against the tide. As always, good luck (which often accompanies the prepared mind).. K