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

To: HH who wrote (8710)	4/7/2002 2:11:09 PM
From: chowder	Read Replies (1) \| Respond to of 206131

Near term upside? Maybe an OSX 103. The charts actually favor more downside from here barring any major news developments. TA isn't a cut and dried sure thing, if it were, everyone could do it successfully. What separates those who are successful at it from those who aren't, is there ability to read "the condition of the market" and assimilate those conditions to their analysis. During the last seven years, the OSX has peaked in March, pulled back and then rose again coming out of April. This year the War premium has held the OSX up a little longer. The chart indicates the OSX was recently overbought and due for a pull back. It is reasonable to believe the OSX will test the 50 day moving average, around 92-93. With earnings announcements coming out and expected to be lower than last quarter, one would expect the OSX to pull back even further. However, the tensions in the Middle East could prevent that from happening. In addition to the tensions in the Middle East, you have Iran and Iraq talking about an oil embargo. You have the Venezuelan oil workers going on strike. You have rising oil prices which could delay an economic recovery, which in turn hurts demand for oil. On the other side of the coin you have lower earnings estimates for the oil service companies. And, you have Russia who has been taking market share away from Saudi Arabia and is now outproducing Saudi Arabia in oil production. This would seem to insure that OPEC isn't in a position to cut back on production in an attempt to keep oil prices high. Therefore, there is too much uncertainty in the "condition of the market," in my opinion, to have a position in the OSX. Therefore, I'm on the sidelines for now. On a risk to reward basis, in my opinion, it's too dangerous to short at this point and too dangerous not to take profits if you have any. Additionally, for someone wanting to take a position in the sector, it would be prudent to wait until the sector is oversold. There are those who won't be able to resist a trade here and there and they may be successful, but part of being successful on a consistent basis is to use good money management principles. Waiting to see the reaction to the upcoming earnings reports would be one way to prudently play this sector. Prices are high and the sector was recently overbought, a correction is needed to make a good risk to reward trade. Let's see if the "condition of the market" will allow the OSX to continue to fall, the charts indicate that it wants to. stockcharts.com[h,a]daclynay[pb10!b50!b200!f][iut!Lh14,3!La12,26,9]&pref=G dabum

To: HH who wrote (8710)	4/8/2002 8:02:02 AM
From: HH	Read Replies (1) \| Respond to of 206131

THE FOLLOWING MESSAGE WAS SENT BY E-MAIL ON MARCH 28, 2002 FROM DAVE ROBSON, CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF VERITAS, TO THE EMPLOYEES OF VERITAS. Dear Fellow Employees Since we announced the forthcoming merger between the two companies last November and after a flurry of merger information sessions, the silence that followed must have been deafening. We are sorry about our inability to communicate with you to the level that you might expect but there were some reasons for that. Firstly, PGS had to finish their year-end audit. This was the year that they changed to Arthur Anderson for their financial auditors so you can imagine the turmoil that ensued. Secondly, the sale of Atlantis by PGS has proven to be more challenging than expected and required a considerable amount of senior management time. Only in the last two weeks has work continued on due diligence and other merger issues in earnest. As a result of certain financial issues which have been well documented in the media, some of the basic terms have been modified by agreement of both companies and they are as follows 1. PGS will receive .4 shares of the new company for each of their existing share while Veritas will receive one share for each existing share. PGS shareholders will own about 56% of the new company and Veritas shareholders will own about 44%. 2. Veritas will be entitled to nominate six of the proposed ten directors and PGS will be entitled to nominate four directors 3. I will be CEO of the new company, Reidar Michaelson will be Chairman and Matt Fitzgerald will be CFO. These amendments to the merger agreement are subject to final board approvals of both companies although the boards have been involved in the negotiation of these terms. A joint press release will be issued explaining the above facts. I would like to point out that while there are some structural changes as noted above, this is still a merger and it should not be viewed as a takeover of PGS by Veritas. Among other things, we will be developing a new name, logo and all of the associated things to give the new company a new image. It is imperative that we all cooperate to make the new, combined company the best geophysical company in the world and a very strong company in the FPSO business. I know that I can count on your support.