Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SliderOnTheBlack who wrote (56013)	12/3/1999 9:07:00 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

Ah, I see why we are at odds. You are calling Cash Flow Per Share CFPS. I am referring to CFPS as Cubic Feet Per Share. I'm a bit surprised you didn't identify the discrepancy as it should have been obvious from my explanation. A few pennies of cash flow per share makes no sense for these stocks. I find the number a convenient metric to determine if the stock is under/overvalued relative to my current holdings. Appreciate your clarification. I will have to read your post more carefully when my brain is working better (VBG). I agree it's all in fun. I am not enthralled by the small/mid caps, only their valuations. I think OEI is a great deal at these prices. It's not a small cap but is priced like one (seems like everyone is in agreement on this point). I do not agree that large caps will move as fast as small caps PERCENTAGEWISE. a 1/8 move in TMR is over 3%, in MEXP it's almost 10%, but in NBL it's only about .5%

To: SliderOnTheBlack who wrote (56013)	12/3/1999 9:44:00 PM
From: articwarrior	Read Replies (1) \| Respond to of 95453

On Cash Flow Multiple... Just for reference sake the market usually will pay from 3 to six times (Annual) cash flow(cash flow multiple) for a mature portfolio of oil and gas properties. Now applying that to the conversation of cfps multiple it gives the rest of the crowd a little more down to earth perspective of what Slider is talking about. Remember all that the cash flow multiple is just a rough estimate of the value of the oil or gas producing properties. Reference:"Oil Company Financial Analysis in Non-Technical Terms" Johnston 1992 Arctic

To: SliderOnTheBlack who wrote (56013)	12/3/1999 9:56:00 PM
From: SargeK	Read Replies (3) \| Respond to of 95453

A Boiler Room cretin on YAHOO Called me a Hypester Is this HYPE? 1. On 6/1/99 (the merger was announced) FGI closed @ 16.375 (X) 23.42m shares = Mkt Cap $383.5m 2. On 6/1/99 HLX closed @ 7.3125 (X) 28.857m shares = Mkt Cap $211.02m 3. Per (merger) proxy, on 6/30/99 FGI shareholders had $102.849m in Stockholders Equity (SE) and HLX shareholders owned $166.872m in SE. Combined (HLX & FGI) SE was reflected as $296.1m on 6/30/99. (Don't ask me to explain how they determined the combined SE, I don't know; but, that is what is in the proxy.) 4. From 1 & 2, (above) we can see that Mkt Cap of the combined companies (now FGH) was $594.52 (a 100.8% market valuation premium) over the combined SE of $296.1m on 6/30/99. 5. At today's historic low of 8.6875 (X ) 40.1m FGH shares) Market Cap dropped to $348.37m resulting in a market valuation premium over SE-(6/30/99-$296.12) of only $52.27m. WHY THIS IS IMPORTANT! In a period of just 6 months the Equity Market (that's us) has reduced the valuation of FGH to a level $35.13 millions below what the MARKET said FGI was worth by itself on 6/1/99. It appears the Market is penalizing J. L. Holloway for increasing BOOK VALUE of FGI ($4.39) stock by $2.99 (68.1%) to $7.38 BOOK VALUE of FGH (Merrill Lynch's BV#) in only 6 months. . If there is such a think as Equity Market rationality, the conclusion must be reached that Halter's SE of $166.872 millions was worth $35 millions less than ZERO. Mr. Holloway has stated repeatedly since the IPO 2 ½ years ago that his foremost goal was to increase stockholder value. He has done so in SPADES and continues to KEEP HIS WORD. That is good enough for me. The six primary drivers of this downward thrust are: 1. Ocean Rig Dispute – (According to Mr. Hastings should be settled by the end of 1Q/00) 2. Tax selling – (ends 12/31/99) 3. Absence of financing for the Millenium S.A. – ( Expected to be achieved this month) 4. Massive Dis/Misinformation regarding the combined company fundamentals – (slowly being resolved) 5. Large overhang of Short Positions – (which is dropping significantly) 6. Last, and probably the most significant is MOMENTUM. Technically when a sharp drop occurs such as that experienced by FGH the Sentiment shifts so negatively that it takes on a life of its own UNTIL there are few Sellers left and the Stock picks up new BUYERs because of its oversold condition. We may have reached the selling CLIMAX today; but, no one KNOWS that. The Company is lead by Outstanding Management, has attractive financing terms, and is in the right place, at the right time. The Contracts will start coming in (the DOLLARS & the NEED) are here. The Long Term outlook is exceptionally bright in view of their position in the Market place and the long term DEMAND for their products exists as far out as the eye can see. FPSOs, Double Hulls…etc. Following today's debacle, I just thought some of you might want some encouragement. At some point FGH will again be an institutional and mutual fund manager choice. For fiduciary reasons money managers are reluctant to BUY issues with a lawsuit hanging over it even when the Outcome is expected to be favorable. Best Regards and Good Luck to All, SargeK NOTE: Slider, if that is HYPE; then I guess I have answered my own question. >VBG<

To: SliderOnTheBlack who wrote (56013)	12/3/1999 10:52:00 PM
From: Gameboy	Respond to of 95453

Slider, speaking of NAV, OEI provides an example of how understated E&P book values may be. From OEI's 3rd quarter report edgar-online.com WRITE-DOWN OF OIL AND GAS PROPERTIES - At June 30, 1998, the Company recognized a on-cash impairment of oil and gas properties in the amount of $218.4 million pursuant to the ceiling limitation required by the full cost method of accounting for oil and gas properties, the write-down was primarily the result of the precipitous decline in world crude oil prices experienced during the second quarter of 1998. Convert those properties to $25/barrel oil and you'll realize a few hundred million dollars. Fun with numbers, huh?

To: SliderOnTheBlack who wrote (56013)	12/4/1999 1:43:00 AM
From: CpsOmis	Read Replies (1) \| Respond to of 95453

O/T <<- now Cosmo, I "aint got no use for" fwiw... Gosh slider, give it a rest already....the name is CpsOmis. I GET that you aren't pleased that I have challenged some of your ugly behavior on this board: the dishonorable pump and dump of MEXP and other microcaps earlier this year, the apparent dishonoring of your pledge to leave the board if you were wrong on that pump/call, and the contrast between your chest thumping on your wins and silence or begrudging acknowledgment on your losers, the badgering and taunting of those that challenge you. (Notice I did NOT say..."Got MDR?", if you get my point.) Hey, we have never met, nor will we. We both are here because we have mangaged to acquire enough $ to make it worth our while. Obviously this says a bit about our personal skills. Most of us here are literate, intelligent people. Lets stick to our mutual self interest and quit with the name calling and taunting, eh? Not just me, but everyone who challenges you. It is not appreciated, nor do I enjoy spending my time defending myself from your snide attacks. You don't have to like me or even respect me. But I demand that you SHOW me basic respect by stopping the snide remarks and name calling. You have a place here and do contribute, as I will readily acknowledge. I am here along with the others here to maintain and build my wealth. We can have fun and help each other, or be obnoxious and manipulative. Life's short. Please stop the public insults and name calling. To those that have sent me the many PM's in support of this discussion/condemnation of slider's darker side, I give my thanks. To those of you that are getting sick of this, please accept my sincere apologies.