Don-n-ABQ

Gulf Island Fabrication: Value with Deepwater Exposure

Tom,

Well, I typed out a big long reply then hit the wrong button and it was lost.

Anyway, GIFI to me is more of a trading vehicle than a long term hold.

What we need is a chart that shows worldwide offshore rigs under construction. I guess this would be a buy when the price of crude is going up, the offshore rig count is going up, and day-rates are going up? Then it is a buy. When those indicators go down we short.

I like companies like Carbo Ceramics (CRR) a lot better that GIFI because of the cyclical downturns/overbuilds.

Thoughts?