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Gold/Mining/Energy : Global Santa Fe (GSF) (formerly Global Marine) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (1165)	2/4/1999 8:39:00 AM
From: gizelle otero	Read Replies (1) \| Respond to of 2282

Stop Speculating and Listen to the CEO: Here are two quotes from the 4th quarter conference call... 1. " “I wish we could look forward to another record year in 1999, but, realistically, tougher times are ahead. The strong growth in demand for oil and gas that characterized the past decade has slowed with the financial crisis in Southeast Asia. Iraq is adding new supplies of oil to a glutted market, and OPEC and other major oil producers appear powerless to throttle back their production enough to increase prices." 2. "“I am confident that world energy demand growth will recover and the excess of worldwide production capacity will turn to shortage, but the timing of these events is impossible to predict. Under these circumstances, our best course is to adopt a strategy that will allow us to weather the worst yet be prepared to capitalize on potential opportunities. Although our balance sheet remains strong and our cumulative cash flow is expected to exceed our cash needs over the next several years, we intend to conserve cash until the market begins to recover. We have therefore instituted hiring and wage freezes and are cutting other costs selectively, including cold-stacking rigs that cannot find gainful employment. Our capital expenditures will be restricted to those essential to maintaining the competitiveness of our fleet and completing the two ultra deep-water rigs we are building for work under existing long-term contracts. Nevertheless, we continue to look for creative ways to enhance long-term shareholder value." So the bottom line is short-term negative (We are "hunkering down".) and long-term positive. Very positive! The prudent speculative approach is to invest now and be prepared to wait for a reward that is expected to be in the order of 500-700% appreciation from $8.00/share by the year 2000. Here are some figures to entertain you while you wait: FY01 Sales Estimate: $1,899 million FY01 Shares 180 million Per share sales 10 million Per share earnings 2.50 Estimated P/E 20-23 Estimated Stock Price (00-01) $50-57.50 Estimated Appreciation (basis=$8.00/share) 625-700%