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Gold/Mining/Energy : Keywest Energy Corp. KWE Toronto -- Ignore unavailable to you. Want to Upgrade?

To: Hickory who wrote (92)	6/27/2000 4:48:00 PM
From: Professor Dotcomm	Respond to of 103

You have nailed the problem, Hickory - the lack of identifiable acquisitions. However history does not always repeats itself. The price asked - or to be more accurate, the final price in an acquisition - also depends on the two year price prospects for oil and gas, whether the acquired company is privately held (perhaps, hopefully, with estate planning problems), the current valuation of KWE and, often overlooked, the size itself of the target company. If it is small enough, its value could be less than if it were, say, one quarter of KWE and three such companies may be possible to acquire for the price of one that is half KWE's size.

To: Hickory who wrote (92)	6/27/2000 10:28:00 PM
From: Scott Mc	Read Replies (1) \| Respond to of 103

Hickory, re Quote This time around, the situation faced by Pedersen, Blue and West (now on a part-time consultant basis) is much different from what it was in their two previous ventures. This time, the prices received for products are much higher. But, because of this, according to McLauchlin (the CFO), sellers are asking ridiculous prices that would make it extremely difficult to make much profit from acquiring their assets. Unquote Individual assets may be very expensive, however companies are very cheap, with the cash they have an aquisition could be very profitable. Scott