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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (381)	1/6/2002 3:33:31 PM
From: Don Earl	Read Replies (1) \| Respond to of 16631

<<<Oil and Gas: I am not real comfortable here yet, as I think it is early, but there are some good names like NBR and SEI, COO, and others, for diversification sake.>>> I saw your post on the Value thread and was curious. Unfortunately, your credibility has to suffer considerably by mentioning SEI as a "good name". Members of its board of directors have been involved in the bankruptcy of 2 publicly held companies and one private company in the last several years. The board member who heads up the audit committee of SEI also headed up the audit committee of another company which got hammered on securities fraud for falsifying invoices to pad the numbers. The company's debt load is through the roof and $30 million of last quarter's reported revenue was non-cash barter transactions. The company does not do any of their own surveys, so there is no backlog of business to cushion a downturn in economic conditions or commodity prices. Their market is basically limited to North America where 85% of exploration is in natural gas, and natural gas prices are in the basement. The company is leveraged to the hilt, and continued weakness in natural gas prices and capital spending on new gas wells is likely to leave the company facing Chapter 11 within a matter of months. The only reason to pick SEI for diversification would be a desperate need for a tax write off due to unexpectedly high capital gains on other issues. Seitel makes Enron look like a Dow 30 company. I can appreciate how much fun it must be to pass yourself off as some kind of stock guru, but at least do enough research on your picks to sound believable. A person would have to be a halfwit to hold SEI overnight under current market conditions.