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Strategies & Market Trends : Group Therapy -- Ignore unavailable to you. Want to Upgrade?

To: Duane L. Olson who wrote (3470)	5/8/2001 12:40:52 AM
From: Duane L. Olson	Respond to of 4564

The NCN purchase of Magin apparently is good, since NCN reports that the acquisition "will be accretive". Guess I have to learn a bit more about analyzing these companies.... I had looked at the cash flow multiple and came up with a yield of about 25.5%, compared with the current rate of about 27% on existing NCN shares. But if the buy is accretive, we would be looking for an increase in the $,14/month (Can) payout -=- after the deed is done.. An extract from the announcement: QUOTE Reserves acquisition price $9.17 per boe Production acquisition price $29,630 per boepd Cash flow Multiple 3.9 The acquisition will be accretive to monthly distributions on Petrofund units, which are currently $0.14. UNQUOTE tso