Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Big Dog who wrote (66027)	5/11/2000 11:06:00 AM
From: SliderOnTheBlack	Read Replies (2) of 95453

Big Dog - "the Dawg would only bet a sure thing" - ... so it must be time to be buying some PKD. Well, you led us right on the Kegger, have to go take a look at PKD... I just love the Dirty Bird - the Falcon flys like an Eagle in Boom 2000-2002 ~ I'm putting some money to work in AHC KMG COCb OXY on any weakness here - these integrateds are so under appreciated. Look at the money - earnings & cash flow that KMG & AHC particularly are printing... Big $ - I feel safe in that space right here - and it is one of the subsectors I would feel safe - margining. Diana - quite honestly, you lost me on your arguement on margin; I think the main point I am making is that we had a "Euphoric High" with all of this Margin Bravado being 2:1, or even 3:1 leveraged at the old OSX 115 - only to get whipsawed back to OSX 100 (not to mention the prior whipsaw trading ranges). That was a 30% hit to capital at the minimum. If one had $100K invested and margined at .50 maintenace levels (max) controlling $200K at OSX 115 - when it fell to OSX 100; one then had only $70K controlling $170K in stock and that was now .40ish maintenace - close to margin call territory... a 15% pullback became a 30% hit to trading capital. IF the OSX merely pulled back to support at OSX 85 (as Post Patrol called) one would then only have approx $45K left from their original $100K which now only controlled $145K and they would be at margin call city - at only .30 % maintenace. If they were 3:1 leveraged - as many here claimed; they got killed and would have been wiped out on a retrace from OSX 115 to 85. If you believed this Pinocchio-esque Braggadoccio - MeThinks you are in serious danger residing in the Big City... I noticed that whenever anyone questioned this "Max Margin Braggadoccio" - that the "offenders" soon were posting, that they were "taking some profits" - "glad they lightened margin" etc - all AFTER the fact and AFTER the posts questioning the math and the logic in a volatile cyclical sector with this volatility of late ? If you beleived all that Margin BS - please don't accept rides, or candy from strangers...because you've got niave~ stamped on your forehead... Trust me - there was either a lot of Bu!!$hitting going on here (there obviously was) - or there were some real fools who have been teetering on the brink of getting sold out by their broker - like "Q" had happen earlier in the cycle and he obviously failed to learn anything - or perhaps he did (VBG)~ and now only vicariously rides the margin wave ? What I was trying to convey - was that this "MAX MARGINING" was not only a crock of BS - Braggadocio - but, was MATHEMATICALLY IMPOSSIBLE - given the volatility & the trading ranges of the sector since the fall of 1998. We either had some serious lying going on - or, some people here are now trading with about 10-20% of their original capital - period. Margin is for "hit & run" trades, or short sector legs/waves imho - and quick profit taking at the first sign of topping is in order. What it is NOT for - is for riding on "MAX" margin on a buy & hold basis in a volatile CYCLICAL sector - and all this BS Bravado of late - totally misleads new traders who are entering the market every day. If I could convey one thing to DEFINITELY NOT DO - for the kids at home; it would be to NOT buy & hold on "MAX" margin... Diana - look at this OSX candle chart - with sticks in both directions and tell me THIS is a margin buy & hold candidate ????? hello....? siliconinvestor.com - it's nice to see "Princess Contrite" back again... by the way - great call on RIG... still got that one in my LT bag and I did margin that one - you should of (VBG)~ but, not where you did evidently did pricewise ~

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