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

To: Sweet Ol who wrote (30216)	2/24/2004 1:08:13 PM
From: chowder	Respond to of 206085

My 15 min charts on RRI continue to show distribution. This is unusual since you often see some accumulating on the very short term charts. Not with RRI though. Steady distribution on the 15 min chart and it is now showing up on the daily chart intraday. dabum

To: Sweet Ol who wrote (30216)	2/24/2004 1:09:41 PM
From: jim_p	Read Replies (2) \| Respond to of 206085

John, I'm counting on ya. Almost doubled my position this morning at $6.65, not sure I can take having this much fun for much longer. We can't be more than 5-10% at most from the bottom of this sell off for the following reasons: 1. Strong institutional buying over the last month is drying up the weak hands and placing the float in the hands of long term investors who are not worried about the day to day fluctuations. 2. 4Q numbers were actually very good and beat the street by a nice margin (second Q in a row to accomplish this). 3. Despite the poor performance on the CC, management did state that it is their belief that 2004 will turn out to be the transition year (bottom of cycle reached). 4. Guidance of earning $.25 at the bottom of a multi year cycle is not bad news. 5. RRI being down 7 out of the last 8 days is about as bad as it gets. 6. At 6.65 today the stock corrected 20% from the high, which is about what one should expect after the run the stock has had. If you average the six corrections we've had since the stock bottomed the average is 22% (high beta stock). 7. At year end audit RRI has cleaned up it's balance sheet as much as the accounting rules would allow with new management getting ready for the future and there were no major surprises. 8. It's my belief that guidance to low due to the layoffs that are currently taking place and the fact that we have gone from an aggressive management to a very conservative management team and RRI has a lot of leverage to a change in earnings from things that are beyond managments control (weather, NG prices etc). 9. RRI has the asset base to earn over $2.00 per share in a normal market and as we all know the pendulum always swings too far in both directions. 10. An additional $200MM in expense reduction over 2004 and 05 is also a very positive move that shows how serious management is in turning the company around. 11. There has to be a lot more but I'll think of it later. It would be nice to see RRI close above the open of 6.87 today. Jim