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Gold/Mining/Energy : Stampeder Exploration

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To: Mark Kubisz who wrote (23)7/29/1997 8:54:00 PM
From: zigler   of 37
 
I have been reviewing Gulf's numbers and their production and cashflow performance over the past year or so looks good. However, I am worried because their debt will be about 4 times yearly cashflow after the aquisition. This is high for an oil company where debts are usually less than 2 times yearly cashflow. The debt to cashflow ratio will actually decrease after the deal is completed because Stampeder was trading with a debt of 2 times yearly cashflow.

Any comments?
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