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

To: kormac who wrote (81357)	12/12/2000 5:04:18 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

That little KEG jump warmed the heart of The Dog even all the way over here in cold dark Norway! How sweet...but we must remember that she has been many days above ten so we're just getting back 'even', so to speak. I still say I'm a KEG seller at 15...and I expect to be out by early/mid Feb. FWIW, I have often mentioned the bonds of this sector as a 'safe' play. Those of DO, PKD, and even FGH are quite attractive and are all converts. I think the absolute best buy is the PKD bond selling at about 82 and giving a current yeild of around 7%, maturing in 04. Money in the bank for a decent total return with the added bonus of a kicker should PKD ever get its 'due respect'. DO has a lower yeild, but will move above par quickly as DO nears and exceed 40 (strike price of the convert)...when DO was recently about 46-ish, the bond was about 122. So now is a good time to buy this one at something very close to 100 (haven't checked exact price lately). The FGH bond is more of a gamble, but pays above 7% and sells for about 54 with an 04 maturity (I think). There is some risk that FGH will go belly up and sink the bond, but if not, this is a most excellent buy if just for the dividend and the return to par, moving from 54 to 100. I can report from Norway that the business of the offshore patch is alive and well...keeping His Doggedness VERY busy. Let's hope the sector is passed the 4Q blues and ready to have an early move to 1Q buying as has been the historical case. As we know, follow-through buying two days in a row is a bit unusual for these stocks - and we have actually been building here for four trading sessions, but maybe this time will be different. Maybe. big