To: SargeK who wrote (37775 ) 2/20/1999 1:25:00 PM From: SargeK Read Replies (1) | Respond to
In their recent conference calls Mr.Chauvin/GIFI/CEO and Mr. Holloway/FGI/CEO outlined their visions for the future. Mr Chauvin remarked that he anticipates a pick up in activity this year following a soft beginning in the first quarter. He also indicated the Company had received some unexpected orders in December and these would work their way into production, beginning this month. Mr. Holloway also expects a pick up in activity later in the year but cautioned that 1999 would probably not see the revenue levels attained in 1998. The latter also said the company was getting new orders and they are maintaining 18 to 22% profit margins on new projects. Backlog for FGI is over a half billion dollars (including the recent $143m drilling ship order from Brazil). He further said Capex would be reduced from 1998 levels by approx 85%. To conserve cash with an eye toward further acquisitions particularly high tech equipment companies. Both Gentlemen appeared comfortable with current backlogs in view of the current market. Mr. Holloway expressed the view that he expected to maintain current profit margins even with soft commodity prices.biz.yahoo.com The analysts (forecasters) have been wrong every time. This is "Rear View Mirror" analysis at its worse. While the forecasters have the company shrinking this year, these same analysts call for 16.8% annual growth over the next five years versus S&P500 growth of only 7.2%. Further, for the past 5 quarters earnings by these analysts have been underestimated by an average of 28.9%. At 6 5/8 GIFI is selling at only 6.31 times FY99 Estimated EPS of $1.05 (avg est).biz.yahoo.com Again, the forecasters have been wrong every time. For the past 5 quarters, analysts have underestimated FGI earnings by an average of 16.72%. At 11 7/8 FGI is now selling at 6.79 times estimated FY99 EPS of $1.75 (avg est).
