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

To: Peter van Steennis who wrote (6644)	2/12/2002 1:30:38 PM
From: jim_p	Respond to of 206325

Peter, It doesn't surprise me given the dramatic decline in the stock price and the fact that HC raised equity right after the alleged inappropriate earnings were recorded. My take is the amount most likely will not be material, but if the amount of the earnings or revenues in question is greater than 5% of the earnings or revenues in the quarter in which the error occurred, then HC will most likely be forced to restate earnings for that quarter. My guess is that is the case and that is why it's taking the company so long to get back with the investors. Last time I talked with the company I was told that the decision to restate had not been made and they were still evaluation if it was required. My plan is to keep a full position in HC, and if they announce a restatement and the stock sells off then I plan to double up. The numbers should be small, and it should be the last chance for a sell off in HC if it happens. If they restate the law suits will have to be dealt with, but they should be able to resolve them for a reasonable amount of money due to the size of the expected restatement. Hope that helps, Jim