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: SliderOnTheBlack who wrote (51256)	9/16/1999 10:22:00 AM
From: Gameboy	Read Replies (1) of 95453

Slider, here's one reason to bother with FGI and may explain some of the FGI shorts. Consider shorting a $100,000 worth of FGI (8743 shares at yesterday's close) and buying $100,000 worth of HLX (similarly, 17,391 shares). When the shares convert at .57 shares of FGI for every share of HLX, you would receive 9,913 share of FGI for your HLX. Cover your short position and you would be left with 1170 shares of FGI. Every $1/barrel rise in the price of crude pumps another $75 million dollars/day into the oil industry; when the kitty gets big enough these laid back oil execs and bankers will start scrambling for all their worth. Plot the rise in the offshore oil rig utilization (it's risen five weeks in a row) and you'll see that full utilization will be reached (at present rates) in about 8 months. I'm willing to bet the rate of increase accelerates. King Oil is back.

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