Harken Energy Corporation (HEC) Message Board

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Gold/Mining/Energy : Harken Energy Corporation (HEC)

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To: Arktic who wrote (3769)	12/5/1998 11:02:00 PM
From: Zeev Hed	Read Replies (1) of 5504

Paul, the size (without the additional goodies, but read the S-3 for the gory details) of this one is $15 MM equivalent to a float of 7.5 MM shares if and when they do they exercise, if they do engage in hedging, I would not be surprised to see HEC dropping under $2 maybe even worse. After February 9, they have a new ceiling (which is determined by the pricing during the last 22 trading days before January 9), therefore anytime the stock goes above that ceiling they can (and probably will) short rallies until the background news (a bonanza, or oil at $16) changes dramatically. If that is not enough, two years later, I belive (but check the S-3 yourself) another $85 MM become floorless (the current ceiling is about $6 on this debenture). Thus between here and $6 there is a lot of supply of floorless and unless you have a faith in a find of 10 Billion barrels elephant field (and I mean proven, not probable reserves) out there (probably worth about $20/share in today environment), I do not think that this dog will have very loud barks. Zeev

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