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Technology Stocks : SEITEL (SEI) -- Ignore unavailable to you. Want to Upgrade?

To: leigh aulper who wrote (401)	12/26/2001 12:23:39 AM
From: Don Earl	Read Replies (1) \| Respond to of 427

<<<Seitel will host an analyst meeting at the new facility in early May.>>> Unfortunately, it doesn't look like Seitel has enough liquidity to still be solvent in early May. The recent debt offering, which was used to zero out the line of credit facility, suggests the company is in violation of the debt to EBITDA covenant in the credit agreement. Backing out the non-cash sales reported as revenue in the last 3 quarters, Seitel is well outside the ratio necessary to make the facility available for borrowing. Unless cash sales have improved dramatically this quarter, Seitel is almost out of operating capital even with the debt offering scheduled this month to service existing note payments. It was a press release for suckers. The company doesn't host quarterly conference calls, so why hype a CC six months from now? Any why hype a storage system that will take "several years" to load? The country is in recession. Capital spending on new projects is in the basement. Oil and natural gas prices are sitting near 2 year lows. The number of rigs exploring for gas and oil is dropping sharply on a weekly basis. MTBE, which is made from methanol, which is made from natural gas is on the verge of being outlawed. Cash sales are in the toilet. I guess the only thing Seitel has to brag about is some fairytale about their dot com sub. PS: I did try to look up the posts I referenced, but unfortunately Yahoo eliminated a large number of posts while Frame was violating the privacy of persons using the Yahoo message boards in his attempt to eliminate our American right to free speech. Although Frame made a total fool out of himself with his bogus legal actions, and fell flat on his face, Yahoo still deleted a lot of posts.