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

To: VLAD who wrote (33290)	12/21/1998 4:49:00 PM
From: Gary Burton	Read Replies (2) \| Respond to of 95453

this is likely due to fear of debt heavy ones. FLC 's ebitda covered expensed interest in the Sept qtr by 7.0 times but only 3.7x if you add back the capitalized interest. Total liabilities were 2.3x equity and book is down at 5.10---- In contrast, PDE-another debt heavy one- is trading at about 50% of book and its ebitda covered total interest by a factor of 5.3 times (total liab of 1.7x book equity).PDE is guesstimated to earn 1.06 in 99 for a PE of 6.3 while FLC now sports a guesstimated pe on 99 of 6.9. ----Since all the drillers have been decimated why not stick to the ones with ok balance sheets is the way many feel. ---PGO has total liabilities equal to 1.9x book equity but in its case its ebitda covers total interest by a factor of 10.2 and book net of goodwill etc is 11.86 vs 12.25mkt so i can sleep at night.