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 : Range Resources (RRC) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (63)	5/8/2000 2:05:00 PM
From: David Lee Smith	Read Replies (1) \| Respond to of 82

I spoke with the company some time ago about their exchange program (common for preferred). Their focus was on enhancing asset value per common share. They said their program was accretive to asset value per common share. I never liked this measure of an E&P company because of the volitility of revisions. I like cash flow per share best, coupled with a little knowlege of the nature of the reserves...are they long lived or short, are lifting costs high or low, etc. These general guidelines I think speak more loudly than asset value per share. I know what you are talking about in converting prefered issues below the conversion price that adds to dilluting common share holders. I would be surprised if that is the case here given the large common stake the the Chairman of the Board has and many of its insiders. If the conversion is accretive to asset value per share, it may also be accretive to cash flow also, but that is not guaranteed.