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

To: Big Dog who wrote (34808)	1/11/1999 2:43:00 PM
From: wlheatmoon	Read Replies (1) \| Respond to of 95453

thanks for your thoughts, bd. mike

To: Big Dog who wrote (34808)	1/11/1999 11:29:00 PM
From: marc chatman	Read Replies (3) \| Respond to of 95453

BD, I own a lot of FGI, and I respect your views in the patch, and particularly on rig construction. I've got a couple questions/comments for you. You state: <<The company likely will continue to add to that backlog in the coming months.>> I suppose this is the biggest issue for FGI. On the one hand, with so many rigs off contract, it is an ideal time for upgrades, refittings, etc. However, recent history tells us that drillers aren't going to undertake major construction or upgrade projects without contracts in hand. I'm nervous that FGI won't be seeing much addition to its backlog -- major projects anyway -- until the E&P's start to put the drillers back to work. Is there enough "maintenance" work to keep FGI's backlog full? Am I wrong with my assumptions about the major projects? You also state: <<The company has a stock buyback program that has brought in about one million shares, and more may be coming.>> As I understand it, FGI borrowed the funds to finance its buyback. I believe it was a smart move, but it's a risky one. I'd be surprised if they were to borrow again to fund more share purchases. Another excellent article. Thanks for your views.