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

To: jerry simons who wrote (61126)	2/29/2000 9:53:00 PM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

RRC price targets ? ... just look to last years chart RRC broke out with the best of them last year this time. Deja Vu all over again... Why shouldn't it be ? It's literally a "re-run" here; everything riding on what OPEC does - even the NG plays like BR NBL EOG HSE XTO got sold off equally to the oilier plays. Is RRC not in better shape today than it was last year ? Aren't commodity prices much, much better this year than last ? You may be able to take an overnight to 3-4 week 10% - 25% - 50% pop - per the moves in Dec and Jan over $3; after all - what's changed since Dec, or Jan for RRC ? Nat Gas has moved up. Or you can hang on for a sustained run like we had "same time last year" to $4, $5, or even a sustained move thru $7ish by year end ? Analyst targets are $7 - $10, stock has often ran to $3.50 to $5 and that's 75% to Double territory; if we see $3 gas this summer - $7 looks possible by year end to me. If they dramatically expand cap ex, or have some major drilling upside - $10 by next year sometime is realistic. What I like is the technicals and the tape of late. - as I mentioned 2 major players, the two largest institutional holders in RRC have been strong accumulator's into this weakness. Insiders own over 25% of the company; they are not just drawing their salaries here folks...they have a strong vested interest (but, so did JL - go figure (VBG)... Stock is selling for under 40% of NAV, less than .55 of book value and is fundamentally as cheap as any cash flow & earnings positive E&P that I see... they're profitable here people ! This looks & feels like a bottom here and given the sentiment impact that a postive OPEC meeting will have and with Nat Gas prices and storage fundamentals so positive; it literally is an "option" price and the only real risk is bankruptcy and I have viewed all the public financials every which way and with them being both cash flow and earnings positive and with a major new JV with First Energy ? - BK is not in the cards mathematically... someone show me how it is... You can't margin it and small caps should be owned in a basket. This is not a "pump & dump" - it can't be... I can't move RRC and I certainly am not going to buy enough, or a large enough of a position to move it; it will be the largest single holding within my "Small Cap - BASKET" - far, far from my largest $ holding... and I couldn't be more up front about taking profits and rotating - hell, if it pops 15% in one day and I see a laggard retracing that day - BAMM! it could be gone the same day - who knows... they're stocks - this aint Darva Conger - I aint marrying RRC (VBG) ~ I'm trading it... I "love" the Big Caps here - I really "like" the small caps, but RRC is my fav' small cap name and small caps "could" outperform the large caps appreciation-wise, but they have more risk and I can leverage my large caps with margin - and lower risk... so; all I am saying is take some of your profits on this run and at least do some "dollar cost averaging" - buying some small cap laggards here. CRK just busted out nicely from $2 5/8ths not too long ago and is over $4 here and has performed not unlike RRC of late... RRC's time may be here next... FWIW I hold RRC CRK ROIL RGO MEXP EEX EPEX TMR in my small cap basket, it varies from 15% - 20% of my portfolio in total. I will buy more RRC and other small caps with my "appreciation" gains here. Keeping some "Cash" positons also self-regulates my enthusiasm on margin (VBG) a bit...