Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Think4Yourself who wrote (38039)	2/23/1999 2:48:00 PM
From: Platter	Read Replies (1) \| Respond to of 95453

For those who missed it..From Briefing.com on FGI..."FRIEDE GOLDMAN INTERNATIONAL (FGI) .Some companies in the oil sector are still making a lot of money, but they aren't getting much credit in terms of the stock price. After the close Wednesday, oil drilling services company Friede Goldman (FGI) reported excellent fourth quarter profits of $0.51 a share, a whopping eleven cents ahead of expectations, and up strongly from the year-ago profit of $0.19 per share. Revenues rose a hard-to-argue-with 302%. FGI has managed to post solid revenue and profit growth this past year, yet the stock has taken a beating along with the overall pounding that oil stocks have taken. In fact, with the decline in oil prices, most oil companies and oil services companies have experienced significant business problems. Not FGI though, as witnessed by these numbers. FGI also announced that the backlog of orders at the end of 1998 was $365 million. That isn't up all that much from the backlog of $321 million at the end of 1997, but FGI noted that in early 1999 they also received another $143 million order. Revenue and profit growth in 1999 will probably slow down, but there will be further growth. These prospects are not in the stock price. FGI was a hot stock in 1997, and by May of 1998 the price had risen over 40. Since then, it has been on a downslide as it became evident that depressed oil prices may be around for a while. At the current stock price, FGI trades at only 8.3 times trailing 12-month (1998) earnings of $1.43 per share. Given that FGI is still posting solid revenue and profit growth, that is pretty darn cheap. Investors in FGI are fighting negative sentiment towards the entire oil sector, but the numbers for FGI themselves are still very good. If perceptions for the industry ever improve, FGI could be one of the first stocks to benefit. Yesterday's numbers represent excellent growth for a stock trading at low multiples."

To: Think4Yourself who wrote (38039)	2/23/1999 5:56:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

Lingerfelt; good observations... <<Has anyone else noticed the bogus ask sizes on many of the OS stocks, like FGI and GIFI. Recently I have been seeing 10K+ ask sizes that aren't really there, especially on the down side. For example, a 16K ask size was recently blown through and cleared with a 400 share trade at the ask. >> Everywhere I get my ''info'' the comments and major theme has been the increidble gamemanship, heavy shorting and the virtual electronic Nuclear War that the Street is fighting here, in an attempt to keep the ''lid on Oilpatch prices'' untill the OPEC meeeting. They want a ''sure bet'' here. Do not discount the incredibly financiallly powerfull forces that are at work here; there will be a book in this story some day... Saudi will bring the Us Oil Giants back as an ''Oil - Shield'' for future Middle Eastern Conflict. While Saudi's Air Bases are well within the borders - the Oil Fields are on the far borders... Saudi, may have just acquiessed to the New World Order, over-producing keeping the lid on Global Inflation while Greenspan & Co. could reflate the Global Economy... Can you imagine where Japan/Asia would be if Crude Oil was $25 ? The chain reactions of Bank/Fianancial Institution defualts would have triggered a near unmanageable Global crisis... Greenspan - Rubin & Co. will now do the ''soft - takeoff'' - managing Energy Prices upward; hopefully as gracefully as they ''soft-landing'' managed this last crisis... Quite frankly they may have done the best thing... They did bring the Domestic Oil Industry to near brink; however there was virtually ZERO political risk to this - as the Oil Producing States are few, are NOT Clinton supporters and the general population loves low Gas costs, heating bills and all that came with this ''management.'' Now Saudi - get's the US Oil shield, plus their technology and investment - if Greenspan can inflate Energy prices without Global Inflation getting out of control and if Saudi gets the US Oil Shield / frontline of Military defense, keeps market share and is also owed bigtime by the NWO... its a win-win situation in the mind of the players involved imho... and another book for Yergin. They will force some stocks down; and if they don't force this to a slight dip below the prior bottom - then we have an exponential upside when OPEC cuts, or if API/EIA numbers show a draw down towards 320 Million boe in supply. Sub 320 M boe - OSX goes to 66-72 immediately according to one of the sharpest of the Oilpatch Analysts... I don't even care what happens with OPEC; the REAL STORY is what the numbers will show when all the shut ins in the US and the Global Cap Ex cuts by Big Oil start to show - still 6 months away. Run the numbers on what even 50-60% OPEC compliance will do ! Combine that with some very savy Think Tank Analysis out there on the over discounted factor of Asian/Japan recovery, the razor thin assumptions being used in the supply/demand balancing act and the proverbial ''rubber band - snap back'' is very, very possible. Also, anyone who discounts the Geo-Political/ Religious issues and their Military ramifications given history in the Middle East; is very likely in for a rude awakening here.... this is a savy risk/reward weighted play imho. Yes, it does require the attention span of an adult - no overnight sensations here... The rewards I expect can NEVER be and have NEVER been, attained unless opposing opinion/sentiment was 10:1 .... I hope daily that my views are chastised here... it assures me daily that I am on the correct path. When anywhere near the majority agree with me - I will begin to rethink my position; but not untill <VBG>.