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iShares Mortgage Real Estate Capped Message Board

  • lilies778 lilies778 Dec 10, 2005 5:04 PM Flag

    question

    I just went and look at this company profile,
    at yahoo.
    thinking I might want to buy some.

    But can someone explain why they only have 37 employes. That is scary , I don't think I want to put a penny in this until someone can tell me more.
    Would appreciate any opinion , is this a misprint ??

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    • REM specializes in exploration with 3-D seismic technology. They specialize in finding oil in the GOM. They outsource the drilling to companies who specialize in drilling in the GOM. This is very efficient. They will never have pension liabilities or health care expenses like GM or Ford. They don't have to pay the drilling crews when they are not working. The downside is they may be slowed down by a shortage of rigs and crews if there is extraordinary demand. UPL also operates this way and they are by far the most efficient and profitable NG producer.
      It is not a misprint.

      The risk with REM is the Gulf of Mexico exposure. There are no hurricanes in the winter so the risk is limited to summer/fall. All the damage from Katrina/Rita is already factored in the share price. All bad news is out. It just gets better from here on. I think REM is a good value play on NG. I also own UPL and ECA. JMHO.

      Regards,

      Lenz

 
REM
11.64-0.04(-0.34%)May 22 4:00 PMEDT