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 : Dynamix Corp (DYX was Dakota Resources, DAK) -- Ignore unavailable to you. Want to Upgrade?

To: Keith Minler who wrote (575)	7/20/2000 1:06:35 AM
From: Benjamin Ng	Read Replies (1) \| Respond to of 587

I believe a small handful of people recognize DYX as a good potential for a large return and with little downside at current prices. I still want to get in touch with Mr. John Squarek later in the summer to see what is his vision for the future direction of the company. Since the current focus has been in oil and gas (seismic), with working interests in natural gas projects, there's speculation that things could be very positive in the next few months. Favourable points (not necessarily specific to DYX): - During the 6 months last reported, the company actually had earnings of 2.4c/sh. If that can be extrapolated to an annual EPS of about 5c, then we're currently trading at only a 2x multiple. - The demand for natural gas is expected to explode over the next six months. Hot summers are not usually associated with natural gas usage, but air conditioning usage actually depletes natural gas inventories (many electric power companies are starting to use gas turbines to produce power rather than the other fossil fuels that produce more pollution). - The current natural gas inventory has been the tightest in about three decades; underground storage of gas in the U.S. is running approximately 347 billion cubic feet below last year's level of nearly 1.4 trillion; with winter just six months away, the natural gas levels would need to increase by nearly 2 trillion cu. ft. to bring the inventory to an acceptable level -- in 1999, the U.S. consumed about 2 trillion cu. ft. of natural gas. - Higher oil prices have added appeal to natural gas as a commodity, thus having a positive effect on its price as well. - Since the U.S. natural gas industry will have difficulty meeting short-term supply-and-demand for natural gas domestically, experts are predicting natural gas prices in the $5-7 range by December (current spot price is in the low $4 range). Local residential heating rates are expected to go up by an average of 30% this year. All very favourable for the heating oils and natural gas industry in general. There are a lot of public companies out there in this arena, but I have a particular interest in DYX because it is my only (remaining) O&G play, and since I've watched this company for about five years, I have a good idea of where I think it will go. Ben