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Stocks T / Tidewater, Inc.


Subject:  Re: Hurricane Rally? Date:  11/5/1998  6:12 AM
Author:  STomlinson Number:  140 of 213

>>>You see, I may be putting too much into what someone wrote previously about TDW not investing in new equipment even as old equipment deprecitates out, but, it seems that TDW may be underutilizing their borrowing power. I don't know how to check this, but, if they are almost fully depreciated on their equipment, with low interest expense on loans (also from the Fool's snapshot page), they are going to take a serious hit when and if they do finally get around to investing in new rigs, etc.<<<

This gets into "circle of competence" issues, and I am not particularly competent to comment on the state of TDW's fleet. I don't have a good idea of the shelf life of TDW's fleet and equipment, nor where TDW's equipment is in terms of its' life cycle. I have read what I could find in terms of SEC filings, etc. that discuss the capital expenditure issues, and have found no mention of unusually large anticipated expenditures. There is comment that periodic maintenence of TDW's fleet could impact revenues, etc., but no red flag about imminent problems.

What I have noticed, based on a somewhat cursory review of TDW's 10 year history, is that they have generated enough cash that debt hasn't been necessary for expansion and capital expenditures. TDW is a company somewhat tied to a commodity's rise and fall in price, I would prefer that they not be leveraged at all. Again, I have yet to get deep into my research, so perhaps someone that has can comment.
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