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

To: Wowzer who wrote (12790)	9/11/2002 8:31:45 AM
From: jim_p	Read Replies (1) \| Respond to of 206092

If PGO were to issue a rights offering at $4.00 per share, that would be less than 10X 2003 EPS and one times 2003 CFPS. Shareholders like Moe who already have a fair amount of cheap stock, would be in a position to buy the shares not exercised by other shareholders. I suspect Moe would either buy the shares or have a friendly party he controls buy the stock at the higher price. The new book value goes from $13.00 to $10.17 per share. Cash flow per share is now $2.61 per share. Bank debt goes down by 200MM from cash flow, 200MM from the rights offering, 75MM (or more under Moe) from cost cutting and 250MM from the sale of Atlantis (if completed???) and the company is now very solvent and on the road to recovery. Your shares are now trading north of $4.00 or higher in an improving sector with stronger management and a good future. Expect some selling at the open from the fear of the dilution. While PGO is already up 100% from the bottom, it is still a five banger for those who buy today. JMHO, Jim