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

To: CommanderCricket who wrote (12988)	9/17/2002 11:19:46 AM
From: Rex Martin	Respond to of 206131

Looking at the chart, do you think PGO will shoot back to $2 ?

To: CommanderCricket who wrote (12988)	9/17/2002 11:51:08 AM
From: kodiak_bull	Read Replies (1) \| Respond to of 206131

Commander: Sir, with all due respect, sir, the chart is unreadable, sir. [This is the way to speak to a Commander.] I've just about given up trying to make sense of PGO's ADS charts (yours) in this country and simply go and see how this monkey traded in Oslo and try to figure out from there, what's happening. stocklink.no Best charts are clearly the intraday, the 1 month (1 MND.) and the 3 month (3 MND.). But it sure ain't like using stockcharts. Rex: As for why PGO is losing money, with a debt equity ratio of 1.73 it's a classic example of why you need to be extremely shy about borrowing if you're in a cyclical industry. And particularly if, like seismic, you're the last one to feed in a particular business cycle. Isenberg at NBR has the formula correct: relatively low debt: equity (now at 0.73) ratio, buy up companies at the bottom of the cycle (see NBR/PESC) with cash or cheap equity, buy back shares at the same time (sort of the same thing), then issue equity at the top (or tops) of the cycle. Lather, rinse, repeat. PGO spent a ton of $$$$ on assets which didn't really come into play in the last cycle. Actually, if you think about it, no decent company should ever sell for less than book value. It just doesn't make sense. Companies buy assets (property, plant, equipment, radar guns, ladies lingerie) in order to make a profit, to get a return on that particular group of assets. PGO at the bottom was selling for 2.8 CENTS on the dollar, 2.8% of book value. It's still selling for 8.6 cents on the dollar of book assets. Kb