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: ItsAllCyclical who wrote (53200)	10/19/1999 10:37:00 AM
From: SliderOnTheBlack	Read Replies (1) of 95453

JimL; re: MLRC - yes; a no brainer thru $7 here - $9 should be support and from there through $12+ of last year will be "earned" via earnings, cash flow & production gains. This quick blow off was unreal; either one large seller just milking out 300-500 share sells; which one would allmost have to do - given the volume; or as I see it; lots of tax loss selling from individuals. There also; could be someone shorting this as a real dirty shakeout; given the great news of the financing; the substantial option exercise by insiders and the positive expectations. This usually never dropped below $6 3/4's. I've bought MLRC at $6 3/4's - $7 before and loved it. So here thru $7 is historically very, very cheap for this stock; and especially so given the financing FINALLY coming together. What I ESPECIALLY like is this quote from the CEO:which explains the impact of those new financing $ - given their ultra low development costs. <<... these wells in this are are very shallow. It's very simple drilling. We drill a well and set pipe in seven or eight days. Then you have maybe another three or four weeks to complete it and then you work your pipeline over and hook it up about another three or four weeks after that. So believe it , or not, one small drill rig running allows us to drill and complete as many as 50,55 wells a year.>> The stock blew up earlier; when MLRC had to shut down production due to their pipeline companies; annual maintenance procedures hitting a problem and taking nearly twice as long as anticipated. A temporary blip... its what's in the ground that is so shallow, so cheap and so easy to produce; that is THE story here... Also; MLRC is going to not just use the $ for drilling' they are going to do their own pipelines - eliminating the problems they've had in the past. $7 is a chip shot; $9 as the sector settles - maybe some profit taking to be expected there... but this is a holder thru $12 & beyond... could be very realistically a $20 stock in 18+ mos. PS - FLC is still the "Single Best Idea" for a couple of brokers... was at $15; what the hell does that make it at $11 ish (VBG)? Got the dirty bird back home where it belongs and it looks like a hold to $30 here. ! Bought more SII this am; trolling for more as we speak...

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