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

To: Gary Burton who wrote (38516)	2/28/1999 8:52:00 PM
From: thomas hayden	Respond to of 95453

A question for an oil expert about VTS. I've been comparing historical valuations of VTS from the previous low water mark to now. In 1994 VTS traded down to about 60% of bookvalue, but they also lost $1.47 that year. VTS also traded at .3 times sales in 1994. Well we are not quite but almost to the point of being at 60% of bookvalue, another dollar or so, and we are at .4 times sales, but it appears that even in these dark times VTS will continue to be profitable. So from a valuation standpoint we are very near the all time lows for VTS. Heres my question, what carried VTS to explosive highs a few years down the road was a continued growth in revenues. VTS's revenues in 1994 were 118 million compared to 530 million last year. If we had a situation where crude oil was above 20 could VTS's revenues continue to grow at such a rapid clip. I'm wondering where do we reach critical mass. If revenues could continue growing at the same rate in 4 years we would be a 2 billion dollar company, and I would suggest VTS's stock, based on historical movements, could climb 10 to 14 times from the current levels. To me that seems kind of dreamy. I would be overjoyed with a 3 to 4 bagger, but again I'm wondering at what level would we see a substained leveling off of VTS's revenues? Thanks.