If Mr. Palmer's estimate comes true, i think we could see better than $45.00. At the top of the last cycle in 1997, RDC made $1.70 and topped out at $43.94 for a P/E of around 25.8. If we can garner the same P/E this time around, we could see $100 share during this drilling cycle. But in this business, you can never tell, just one thing going wrong could always spoil the party, let's just keep our fingers crossed. Regards, Weather
It is a big IF, but if we get anywhere near the historical PE you cite, then certainly my $45.00 figure is too low. I kind of threw the number out there to wet the appetite of long-term holders. I've had the temptation to liquidate some/all my position in RDC but my gut says Palmer is right when he talks about the future opportunities in the industry and for RDC in particular.
BTW, thank you for your regular posting of API numbers.