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Re: Jay Walka post# 55320

Tuesday, 03/04/2008 10:36:47 PM

Tuesday, March 04, 2008 10:36:47 PM

Post# of 107353
RILO/Jay, That S&P report gives an estimated 2009 P/E of 5.8 which I believe is based on a PPS of .75 (and EPS of 0.13). I'm not sure what the typical P/E is, for an oil services co. SLB has a P/E of around 20. Oil States (OIS) is around 10. These are obviously much bigger/mature Co's. Generally, a growing co such as DDI should command a higher P/E than these Co's. With a very conservative (IMO) P/E of 20 for 2009, we would get a PPS of $2.6. A P/E of 30 would give us $3.9. P/E of 40 would be $5.2. All these, based on 0.13 EPS. Someone else on this board should be able to suggest a good P/E value to use for DPDW.

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