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To: SliderOnTheBlack who wrote (66035)	5/11/2000 11:56:00 AM
From: Big Dog	Respond to of 95453

Slide, It's nothing against the bird - it will surely fly high (if they don't do something stupid). I just think that PKD is hitting on all cylinders. 1Q was a fluke. Rigs in Nigeria and Caspian were on standby rates for much of the quarter due to politics in Nigeria and waiting on ice to clear in the Caspian. Both are resolved. PKD's jackups are fully utilized, as opposed to Q1, and are working at higher rates...along with others. (Utilization at 89% for jackups in the GOM. Pricing power is ready to kick in big time.) PKD also has some other new projects on tap for international markets. I think that PKD will knock on the Daily Double door before FLC will. PKD is a low cost laggard and many folks like to buy those cheap stocks, ya know. It would appear that anyone wanting to sell has had ammple opportunity, and with the general bull mkt in the sector...PKD looks like a big winner to me! Maybe it will follow the path of KEG... :) big

To: SliderOnTheBlack who wrote (66035)	5/11/2000 2:32:00 PM
From: diana g	Read Replies (1) \| Respond to of 95453

Margin Redux Slider, you wrote <<<"...What I was trying to convey - was that this "MAX MARGINING" was not only a crock of BS - Braggadocio - but, was MATHEMATICALLY IMPOSSIBLE - given the volatility & the trading ranges of the sector since the fall of 1998...">> Of course the make up of everybody's portfolio is different, and therefore, as they say, "Your mileage may vary", but I was at or near max margin for the last few months and never close to a margin call. I might have dipped below 40% equity for a very brief time, but I was never at all uncomfortable. ---I noted in my previous post some of the advantages to staying on margin as I see it. I'm sorry if it wasn't clear. You may remember I'm not a native English speaker so my wording/phrasing may be less than optimum. Perhaps someone else grasps my intended meaning and could put it more clearly. ---One main disadvantage to being heavily margined seems to me to be the loss of opportunity to buy when we have sector or market-wide dips. This can be somewhat mitigated by maintaining multiple accounts, one of which has little or no margin exposure and can therefore be used to take advantage when such opportunities present themselves. But of course this dilutes the power of margin to gain opportunity capital.--- ---There's always balances to be struck as we try to maximize gains. Your points about the risks of margin are basically true, but greatly overstated, imho. eg, you wrote--- <<<"...We either had some serious lying going on - or, some people here are now trading with about 10-20% of their original capital - period..." Well, I'm telling you that I've bought as far out on margin as I could and rode through the last few months and not had a problem. I know of at least one other poster here (much more respected and knowledgeable than me) who just PMed me that his high-margin strategy experience has also been positive. you wrote--- <<<"...If one had $100K invested and margined at .50 maintenace levels (max) controlling $200K at OSX 115 - when it fell to OSX 100; one then had only $70K controlling $170K in stock and that was now .40ish maintenace - close to margin call territory... a 15% pullback became a 30% hit to trading capital. IF the OSX merely pulled back to support at OSX 85 (as Post Patrol called) one would then only have approx $45K left from their original $100K which now only controlled $145K and they would be at margin call city - at only .30 % maintenace. If they were 3:1 leveraged - as many here claimed; they got killed and would have been wiped out on a retrace from OSX 115 to 85. ..." ---Your example assumes a person buying all OSX, buying in at a peak, and then assumes an OSX fall to 85 that didn't happen. The latter part of your example has the person buying in at 3:1 margin --- Something that can't be done with any broker I know of. you wrote--- "...Margin is for "hit & run" trades, or short sector legs/waves imho - and quick profit taking at the first sign of topping is in order. ..." That's your style. It seems like a good strategy, and I wish you luck with it. ---But it's not for everybody. The points I've made about the tax consequences of trading, and about your overstatement of the risk of staying on high margin for longer periods are meant to provide another perspective. ---I agree that margin use has inherent risk which should be carefully considered. I enjoy your jabs about my RIG miscall! If that's the worst mistake I make I should retire by 30 easily!!! <G> regards, diana