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

To: Jane4IceCream who wrote (64377)	4/12/2000 10:38:00 AM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 95453

Freeway - PKD, I'm buying it mostly for it's technicals and it's status as a laggard play amoung drillers that are off and running. We're at the beginning of the cycle still. If it's turns out that PKD runs into trouble down the road they'll still double imho. If they have some success it's a 3 bagger or more.

To: Jane4IceCream who wrote (64377)	4/12/2000 3:52:00 PM
From: chowder	Read Replies (1) \| Respond to of 95453

Hello Jane! >> Speaking of PKD...what is going on with the company? << The problem with PKD is that Bobby Jr (the CEO), doesn't have the confidence of investors or The Street. Bobby has leveraged the company "big time", and people don't believe he helped the company much with all of the debt he incurred. Bobby said he wanted to take PKD international and then he turns around and buys a local shallow water drilling company. FLC on the other hand, placed their company in a lot of debt but they built drill-ships with them, not barges. There's a significant difference in day-rates so PKD will have that huge debt with lower revenues to pay it off. In addition, Bobby's spending habits have been under review by share-owners. The private jet, big party's at the ranch, making acquisitions at the peak of an oil cycle as opposed to making acquisitions when prices are down, and the list goes on. PKD should have some decent numbers from their Gulf of Mexico operation. Their Rig 257 is in the Caspian, drilling for the old Russian provinces. If PKD hits oil this month or next, I anticipate a nice little pop out of PKD. The price has been inching up in anticipation of this quarter's numbers. However, PKD isn't expected to show a profit for the next couple of quarters. Prudential says PKD might be the last company left, in the oil sector, which could give a huge surprise down the road. The company has a poison pill in place to fend off mergers by other companies, but I forget when it runs out. Bobby doesn't have enough confidence in his own company to buy shares like J.L. Holloway did with FGH. Bobby only purchased a thousand shares, the last time I looked. Surprise earnings and striking oil in the Caspian will see this stock spike up, in my opinion. They miss either one and this stock is back in the three's. I hope this helps. dabum