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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Roger A. Babb who wrote (6681)11/9/1997 5:50:00 PM
From: E Rosen  Read Replies (1) of 9285
 
What do people think of SLHO as a short candidate?

They have been selling all assets except their 32.5% stake in Syntroleum, a private company which claims a superior technology for converting natural gas to "white crude" and other liquid products. (Since Syntroleum is private, this is the only way to invest in them - sound familiar? SLHO was created as part of the breakup of Seafield Capital Corp., which was losing money)

Bob Czeschin (Oil & Energy Investment Report) has been predicting a "50-fold pop on your money" in this stock.

They have licensing agreements with four oil co's: ARCO, Marathon, Texaco, and YPF. A small scale pilot project will be built over the next couple of years.

Shell and Exxon both have working conversion plants which are not economical. Syntroleum claims its process can produce oil at the equivalent of $15 - 20 / bbl. (All use variations of the Fischer-Tropsch process developed by the Germans in the '30's)

The stock is up (split adjusted) from about 6.5 to 50 since March, when it was spun off.

Relevant links:

www.che.com/achema/html/ad1p12s1.htm

exchange2000.com

woodmac.com
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