To: thomas hayden who wrote (35594 ) 1/21/1999 9:17:00 PM From: Hrothgar Respond to
The vast majority of oil/oil service sector stocks have experienced shrinking revenue and profits this past year. There are a few exceptions, such as FGI, that seem to have put together growth during these turbulent times. Even though FGI is showing earnings growth, it is overshadowed by the overall state of the industry. FGI's stock price is dragged down and held there by association with the others; drillers, E&Ps, transportation co's, etc. RIG is another example of a fine company that has been smothered by this environment. No matter how well a company is performing, if its industry is in shambles the investment public will not be eager to jump in even a standout while the possibility exists that the hard times may eventually bleed into that company. FGI may be doing great right now and for the foreseeable future, but no real investment money will flow into it while the oil industry is still mired in this contraction. Very rarely will a standout in such a depressed industry become independent and take off on its own. However, it is highly likely that it will respond the quickest and most dramatically when things do begin turning around.
