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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (3197)	7/28/2001 1:01:06 PM
From: excardog	Read Replies (1) \| Respond to of 206099

Dabum , Jim convinced me to sell PENG (see I listen sometimes) Now this could be considered a bad omen since normally after I sell most stocks continue upward. However I'm thinking of shorting some gas names maybe even PENG but will wait for earnings season to end and keeping a close eye on the AGA. If the injection numbers stay high into late August I'll hop on board short, if not these stocks could continue to rally IMO. Economy is the wild card but at this point it doesn't appear to be very pretty. All subject to change of course. Ironicly and someone correct me if I'm wrong here but in 87 just prior to the October crash UAL was taking someone over or being taken over and the deal fell through. Soon after the market did a swan dive. Not sure the present day situation has any bearing but I tend to look for similarities at least historically and then try to put the puzzle together. Probably means nothing really but the announcement of the failed merger between UAL and US Air struck a cord somewhere. Best of luck to all. Scott

To: chowder who wrote (3197)	7/28/2001 3:56:29 PM
From: jim_p	Respond to of 206099

Little brother, How does the TV commercial go? Just relax. Take a deep breath. Investing is for the long haul. Markets go, and markets go down. If you bet the whole wad on PENG and lose it all, I'm telling mom. LOL PENG will have earnings out in two weeks. Their production was down last Q for the first time in a long while. I suspect it is as a result of a change in direction of the company to longer lived CBM properties. If that is the case, they most likely will be down again this Q also. Selling at 10 times last years record cash flow and having negative growth for 2 Q's in a row will not sit well with the market. The market hates companies who don't grow, and PENG is priced to perfection due to a nice historical grow rate. Going forward, PENG's NG pricing is getting hit a lot harder than most in the patch as a result of their production being in the RM region. On top of that, CBM wells are low pressure wells. If you recall, the western region has the least amount of storage capacity and what capacity they have in now 72% full compared with the Total average of 65%. As the system fills PENG will be forced to add compression, which is very expensive, or shut in their wells. Their region will be the first to be effected. PENG's recent spike up is due to a combination of being added to the S & P index, quarterly buying of the stock by the ESOP and a short covering rally in all oil stocks now which was triggered by the cut in production by OPEC. PENG has a history of big spikes up, followed by bigger spikes down. The stock has been in a down trend since January. We will all soon enjoy the ride back down, Jim