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

To: articwarrior who wrote (42540)	4/18/1999 6:38:00 PM
From: Rob Shilling	Read Replies (1) \| Respond to of 95453

articwarrior, I would love to buy U.S. stocks in the oil industry that are trading below book value and at 1/4 sales. Please give me a list. It would be even better if they were number 1 in the industry. The main reason I am looking to Russia is that LUKOY is a vertically integrated oil company trading at these kind of super low valuations with a chance to grow significantly in the future (Exxon would kill to have LUKOY's access to new drilling projects in Russia). As a valuation tool for resource companies one can multiply the barrels in reserves by 60% of the market price of the asset. LUKOY has between 15-20 billion barrels of oil in the ground. If you use $6 a barrel (which was used to buy Conoco I think), one would get $90-120 billion versus a current market cap of $5 billion !!!!! If one uses the 60% rule that would be $15 Brent times 60% or $9, yielding a market cap for LUKOY of $135 billion to $180 billion or around 30 times ones money (if oil prices stay where they are at). LUKOY pumps more oil than Exxon. It also pumps more than BP. LUKOY is a HUGE company with incredible growth prospects. Russian students do not work at LUKOY and Russia is currently not importing oil (net exporter). LUKOY is a classic BUY low sell HIGH stock IMHO.