In the case of our energy holdings, we recently began adding to some of them. For example, Patterson- UTI Energy (PTEN
), one of the two largest U.S. land drillers, declined over 25% for this reporting period and nearly 16% in the third quarter, in response to weaker natural gas prices. We repurchased all of the stock previously sold and we are now increasing our exposure. Investors are fearful that land-drilling day rates will decline because exploration and development companies will begin to defer some of their drilling activities. At our recent purchase price, PTEN could experience a 50% decline in earnings and we would still be paying barely 10x earnings. The company has no short- or long-term debt and is currently repurchasing stock.