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

To: SliderOnTheBlack who wrote (37097)	2/9/1999 9:28:00 AM
From: marc chatman	Respond to of 95453

Slider, do you have a view on how RIG will handle its contracts which expire in the next few months? I believe the downgrade yesterday cited this issue, and I have posted a few times about the uncertainty as to whether RIG will attempt to lock in long-term contracts at the prevailing lower rates or seek shorter contracts which would give them more freedom to re-sign for higher rates if/when the market recovers. Of course, the first strategy would limit RIG's potential income growth over the next few years. The second, however, would create some of the same uncertainty over day rates as the jack-up drillers encounter. Since RIG is one of the institutional favorites, will it even matter as far as the stock's performance is concerned? For now, I'm just watching to see whether the institutions continue to sell on this concern and give me RIG dirt cheap. I'm not counting on it, though.