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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Sharp_End_Of_Drill who wrote (12517)	8/26/2002 6:18:28 PM
From: jim_p	Read Replies (2) of 206114

Sharp, Let's review the facts we know about PGO. A investor buys 10% + of the common stock. The company now has more than one written offer to buy Atlantis, but is still working with the Chinese to get them the approvals they require to close the deal. They are now also working with other potential buyers. PGO is working with their banks to restructure their debt that comes due in 2003, of which over $600MM of the $900MM is bank debt. The sale of Atlantis will be part of the debt restructure plan, so I don't expect the restructure to be announced until the Atlantis deal is firmed up. All of the debt is unsecured. The company is currently in negotiations with it's lenders to restructure the debt. The lenders have no choice but to extend the debt since they are unsecured. PGO will try to get the debt restructure unsecured, but I suspect PGO will be able to negotiate more favorable terms by agreeing to secure the debt and applying the proceeds of the Atlantis sale to reduce the debt. My guess is there will be an announcement that will address both the debt and the sale of Atlantis once both issues are resolved. This company is far from being insolvent, but the stock price does not reflect where the company is today. Once the debt is restructured and Atlantis is closed, PGO will be at least a 2-3.00 stock. Next comes the new CEO who will further restructure the company to reduce costs. With over 5000 employees and offices around the world, there is lots that can be done to reduce operating costs. My guess is once the results begin to show up in the financials, you have a 5-8.00 stock sometime in 2003. I don't know anywhere else I can get a 4-5X my return in the short run and a potential 10+ banger in the next 12-18 months with very little down side to the current price. Now over 600K shares and will add more on any sell off. Jim

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