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Gold/Mining/Energy : Harken Energy Corporation (HEC)
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To: Zeev Hed who wrote (3064)6/30/1998 7:19:00 PM
From: Ed Ajootian  Read Replies (1) of 5504
 
Zeev,

Fascinating examples to say the least. For HEC, since the Industrial Finance Agreements do not become convertible into stock until October you really can't figure them into the equasion until then. Especially with HEC about to spud their first well in their highest-potential area, the Cambulos Contract. There is no way the investors in the Industrial Finance Agreements would start shorting until the price of the common became relevant to them.

So now we're down to $15 mm of floorless securities, about 10 days of average recent volume. Not exactly anything that would strike fear in the hearts of HEC longs.

Especially when you factor in the point that once the stock price dips under $4.80, if the RSG investors go to convert to common, HEC has the right to pay them off in cash instead. HEC easily has the wherewithal to do this. They're sitting on the next two years of cash requirements. They will have created $100's of millions of borrowing power within the next two years, by bringing several fields (that they have already discovered) to commercial production.

I was sorely disappointed to see from another of your posts that you do not short sell stock. If you do not make millions from your brilliance, what good is it? <g> If you are right about HEC you would stand to clean up, since some big names are behind this turkey and do not follow your thinking.

Seriously, I'm wondering why you do not take action on your own calls.
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