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

To: SliderOnTheBlack who wrote (33415)	12/23/1998 10:14:00 AM
From: marc chatman	Read Replies (1) \| Respond to of 95453

A major drop in volume today for FLC. Perhaps the short sellers made enough to call it a year and go on early holiday?

To: SliderOnTheBlack who wrote (33415)	12/23/1998 10:50:00 AM
From: Big Dog	Read Replies (3) \| Respond to of 95453

Why thank you kindly for them words Slidacious one. Re your comments about asset values..that is something I can speak to with some authority. The value of assets (rigs) can be determined in more than one way...depending on what result one wishes to accomplish...much like polls. Here are some of the valuations that could be placed on a rig: 1. Replacement value 2. Willing buyer, willing seller -- orderly sale. 3. The value based on the current earnings power of the rig, with some expectation of the future earnings power. 4. Fire sale -- owner says SELL IT!! 5. Scrap/salvage value. So do you want a high value or a low value? If you take all the rigs owned by drilling contractors and valued them according to option #3 (the most logical, IMO), I suspect you would come to values much lower than the estimates of the analysts. (You see, they don't actually sell rigs -- they just talk about how much they are "worth".) Then, of course, is the plunge in rig values should more than a couple of similar rigs come to market around the same time. And let's face it, as long as rigs are making money there will be very few, if any, sellers. But when they want to sell them is when they don't make money...then the prices are very low because no one else wants them either. It's an interesting business, this rig business. The people that have made money are those that have had the balls to buy rigs when no one else wants them and hold on until someone does want them. Sounds simple, but it is very painful. That's is why a good broker, like myself, is useful...to identify and develop the right opportunities and to get the investor out of the rig at the right time. big loosbrock.com