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

To: IndioBlues who wrote (45026)	5/19/1999 3:20:00 PM
From: tdl4138	Read Replies (3) \| Respond to of 95453

<FLC> Maybe I'm missing something here (wouldn't be the first time) but why on earth is FLC considered a "buy"? Debt is monumental...dayrates won't recover for a few more quarters...even if crude does hold...and they are losing existing contracts. If I owned stock, I'd be concerned as to their remaining a viable entity. What am I missing? Aren't there better prospects without the problems FLC has accumulated? Drillers with better balance sheets? Even if dayrates and rig utilization were to jump tomorrow...how long would it be before the numbers improved the bottom line? Sure a "buy-out" would solve the problem...today...but what other driller could assume the debt burden? Name 1....And if they could afford to assume the debt...wouldn't it make more sense to merge/buyout other drillers without the problems? I realize they have value in their rigs...but at what price? As usual...I'm probably missing something here.