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Rowan Companies plc Message Board

  • tristrem tristrem Nov 19, 1998 2:00 PM Flag

    Regarding Melting Ice Caps

    This may sound paradoxical, but melting polar ice
    caps might actually result in overall lowering of the
    temperature in the industrialized areas of the world. As more
    fresh water is dumped into the oceans from the melting
    polar regions, water density is altered. This
    alteration is believed to disrupt the ocean currents that
    carry warmer water north from the tropics. Studies of
    ancient ice-cores and pollen have shown that this
    disruption of ocean currents has occurred several times in
    the past 100,000 years, resulting in abrupt overall
    DROPS in the average worldwide temperature, but
    particularly in the latitudes occupied by Europe and Canada.
    Thus, the melting ice caps might actually precipitate
    MORE energy usage in Europe and North America.

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    • It is important to remember that stocks move in
      anticipation of future earnings, which for RDC is a function
      of the price of oil. Whereas economic improvements
      in Asian will not result in a near term increase in
      oil prices because it will take a while to reduce
      supplies in storage, they will be very bullish for the oil
      sector because it will indicate a bottom in oil prices
      and oil sector earnings has been reached and future
      increases can be expected. Furthermore, oil is still being
      pumped and reserves are being depleted, so unless the
      oil companies are planning to get out of the business
      E&P drilling will cointinue. I fully agree in that if
      RDC falls below $10/share jump in with both feet, you
      will be rewarded greatly (2 - 3X grains) over the next
      2-3 years or sooner. It is certainly a much safer bet
      than the S&P 500 at 29X trailing earnings

      • 2 Replies to geomann1
      • I would not expect RDC to stay below $10 for
        long. Many brokers won't allow a sub-$10 stock to
        secure margin positions. I would think the company is
        aware of this and will fully execute its share buyback
        program to stay above $10. In any event, at todays price
        I believe its an outstanding value for investors.

      • I could't agree with you more!!!
        In addition
        to those reasons you mentioned for not selling,
        let's not forget the real possibility of M & A
        You can't discount RDC either acquiring another
        company or being acquired by another company. If either
        scenario occurs, the stock price would rise
        RDC is a solidly managed company and I believe that
        Mr. Palmer will do whatever is required to maximize
        shareholder value.
        I'm going with Mr. Palmer on this one
        and will not sell but rather accumulate for future
        return on investment.....

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