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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: SliderOnTheBlack who wrote (51217)9/15/1999 10:21:00 PM
From: articwarrior  Read Replies (1) of 95453
 
Ah Slider you have such a way to explain market movements.

Perhaps we can try this theory and see how it fits into the oil patch world. Let's start with the basis for the decreasing price of FGI side by side with the other oil stocks.
#1 Wall Street doesn't reward mergers like this, the buyer suffers a loss in share price most of the time.

#2 Let's look at todays drop in price of FGI and analyze how FGI's drop compares to other drops today "AFTER" we discount the increased ratio from .4614 to .57.
a. the increase to HLX shareholders equates to a 23.5 percent increase in value over initial expectations.
b. This is a 23 percent decrease in buying power to FGI
so lets adjust FGI's price to the new ratio. Which is about $ 1.25. FGI started this AM at 12 1/8 and droped to a low of 11 3/8 a decrease of $ .75 and closed at
11 7/16 for a decrease of $ .69. Not even close to the adjustment you would expect given the buying power difference.
c. I contend that discounting the merger change FGI actually maintained extremely well compared to HAL (losing 3.4%). The wild thing here is FGI stock was resilient today!

STATEMENT: I DO NOT OWN FGI

So folks look on the bright side there is one here really!

Artic
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