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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: CpsOmis who wrote (82385)12/21/2000 5:21:26 PM
From: Think4Yourself  Read Replies (2) of 95453
 
High fliers? You think DNR, CHK, and ROYL are high fliers? You ain't seen nothing yet! Don't forget that these guys are selling their production at anywhere from $8 to $50/mcf on the spot market.

I wanted to "reach out and touch someone" (hard) when I read that comment by brmahood about "slido". The guy has a very feeble memory ;o)

RRC definitely has long life reserves BUT they only have $.03/share cash for exploration and they have a MOUNTAIN of debt that must be serviced. Companies like XTO, which were highly leveraged last winter, have dramatically strengthened their balance sheets, and their stock prices are reflecting the improvements. RRC's appears to have actually become worse in this period of record high commodity prices.

My point was simple: redeploy out of RRC into unhedged producers for the next 3-12 months, and then re-enter RRC. The stock isn't going anywhere with those hedges and that debt. I stick by my logic 100% as no one on the thread said anything to convince me I had overlooked something. Those long life reserves will still be there next winter. Unfortunately, so will the debt and hedges.

Different strokes for different folks. That's what makes a market.
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