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

To: energyplay who wrote (30064)	2/19/2004 11:38:34 PM
From: jim_p	Respond to of 206089

Scott, I've not made very much money shorting stocks in the past so I try to stay away from shorting. I do feel EP is still a good short, but the stock held up today pretty well. I suspect one reason was short covering to take some profits after yesterdays sell off. EP needs cash to reduce debt. If oil went to $42 and NG went to $7.00 it would not have much effect on the value of the reserves but it would increase cash flow some. If oil went to $42 and NG went to $7.00 and they both stayed there long enough (several years) to convince the market (the buyers) that these would be good prices over the next 5-6 years and the 12-24 month strip also rose to those same levels than it would have an effect on the value, but EP would most likely not be around by then. Not many transactions are taking place today because there is a large gap between the buyers perception of prices and the sellers perception of prices. An additional jump in prices would only make that gap larger in the short run. Jim