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McDermott International Inc. Message Board

  • trouble_shooter_32566 trouble_shooter_32566 Feb 22, 2000 4:23 PM Flag

    Considering all the news MDR did fine

    the stock is not down anything like Nov 11,

    The asbestos issue is a done deal by court action
    instead of lawyers. Now McDermott must get down to
    business and PR work.

    The value of McDermott (MDR -
    B&W) is a lot higher than this close.

    I bought
    MDR for long term basis, because of tax reason, Iam
    not a short term owner, it will rise shortly as it
    did when it was oversold back in Nov 1999 (when the
    news was really negative).

    So, my goal is one
    or two years from here.

    Mcdermott will
    recover, the negative issue is gone.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • the oil service sector retreated as a whole tues.
      And mdr was down to in concert with all the so called
      neg. News. Adding more on any dips and still long and
      strong. 40% of ira in mdr.bght at 18 and quaded up at
      7.75. Holding for long term or 30s.

    • Are you not aware of the fact that the entire oil
      industry was at a near standstill in Q4 of last year?
      Capital budgets were on hold, major projects were being
      deferred, the entire industry was in a state of
      consolidation, bla, bla, bla. This is what is unique about the
      oil industry. A turnaround happens quickly once oil
      prices are seen as sustainable above $20/bbl. That has
      happened, and operators are gaining confidence (and sorely
      needed capital) to resume exploration, and development
      projects. This will drive MDR toward a higher level of
      activity in construction which will greatly contribute to
      profitability in 2000.

      This period is a very good time
      to buy this stock at a low price IMHO. This one is a
      buy and hold for 12 months. The oil industry is
      slowly recovering; MDR is well positioned, too.

    • 1. 60% of the business will not be subject to
      asbestos claims. wallstreet and the institutions will
      eventually evaluate them free from any future claims (this
      is worth much more than $10/share),

      2. most
      of the remaining business is oil platform and
      construction - a sector that mdr is a leader in and is set to
      explode, and

      3. fuel cells are hot - mdr's
      investors will insist on mgmt. unlocking this value or they
      will be ousted, and

      4. bw will be valued at $0
      for now - no big deal and a positive because its been
      assigned a neg. value since the debacle late last year
      because of its perceived unlimited liability.

      luck to all

    • we are in at 9.06 and holding until 17+ as target.

    • MDR has a book value of $14. Of course this does
      not consider the liabilities forthcoming but one
      thing is for certain, the stock price has considerable
      cushion built in on the downside. One thing grabbed me in
      the earnings, the backlogs grew big time! Another
      thing, the last two days in after hours trading the
      stock price shot up. I'm betting someone is
      accumulating. Oil prices are high, backlogs are growing, my
      money is betting on a comeback. The only question is
      when? We will all have to wait. The chapter 11 thing
      bothers me. This tells me that it could get ugly. This
      does tell me that MDR believes they can win and come
      out ahead. If they broke up the company, that would
      have been worse news from my perspective indicating
      that they wrote off the portion broke off. I am in for
      the long term. Good luck all!

    • above 11.

    • trouble_shooter_32566 trouble_shooter_32566 Feb 24, 2000 11:14 AM Flag

      If it was'nt for the Business Week article where
      James Marquez of Bayou Securities said he expects
      McDermott's board to move toward breaking up into three
      companies, because the value of its parts is worth more than
      its current stock price.

      I believe MDR would
      be down to $7.00, instead of $10.00.

    • fact that the courts did not question the 2
      Canada plants that make up the Power Generation
      division. The 40% revenue is no longer factual with these 2
      being carved out of the bankruptcy. I hope this is good
      for the shareholders and if it stands then profits
      from these fossill plants can be funneled into profits
      for the corp thereby circumventing the bankruptcy
      profits that have to be set aside. As you said the judge
      may just be an old home boy. I could see where after
      a few months after approval of BR they could then
      shift the rest of fossill work to Canada and let the
      others dry up and file a 7. Just guessing

    • Listen to what gr8jaja (a lawyer) says: the
      bankruptcies will drag on and on and the judge may require
      bigger contribution to the trust fund!!!!

      who is gonna pay for the additional

      Remember, MDR is asking a bankruptcy court to decide all
      present and future claims... There are no guarantees, the
      judge will do so. No guarantees litigants will not
      appeal for a bigger share. Look at tobacco cases. Look
      at Philip Morris.... Judge may throw the whole thing
      out next year, then what?

      In the mean time,
      biggest earning generator will not be contributing a dime
      to the bottom line....

      Asbestos threat is
      pretty much there, it is just suspended while bankruptcy
      is in progress.

      And to the uninformed poster
      who still believes that there is $10/share in the
      bank; you are about 8 months out of date. That money is
      gone!!!!! No more.

    • <EOM>

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