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

To: Think4Yourself who wrote (68719)	6/24/2000 12:08:00 AM
From: jim_p	Read Replies (2) \| Respond to of 95453

John, Interest rates are cheep now and going higher fast, and more important the money is available now. If you believe in the recovery, which all of the drillers do, equity is still the most expensive form of capital even at today's PE's. You take capital when it is available, and believe me this is CHEEP capital. My only question is, how are they finding someone to buy this unsecured paper so far out of the money. If it's an equity play, why not just buy the equity? I think they are smart for doing what they are doing. When you can price a conversion 35-50% out of the money, it tells you were the buyers think the equity is going in the near future. It should make you feel good as a shareholder. The buyer is not buying it for the yield on the zero coupon debentures. It should also tell you where the issuer's think interest rates are going, and I agree. Jim