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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: TWICK who wrote (47615)	7/8/1999 8:12:00 PM
From: articwarrior	Read Replies (2) \| Respond to of 95453

The reason KEG did not move at the beginning of the year is because it had massive debt from all their mergers/take-overs. They restructured their debt through dilution of the stock @ 3 per share. Paid down a sizable chunk of the debt, kept around 25 mil for a rainy day buyout. I like how well management was able to blend in other companies to create synergy. This stabilized their outlook and S & P gave them a "Stable outlook". At 50 percent dilution they still have a upside potential of 18 - 20 per share within the next year or two Given a steady 18 - 20 dollar oil price. I shorted KEG before the turn of the year until the restructure.