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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: The Perfect Hedge who wrote (24372)	10/30/1997 10:10:00 AM
From: Mike M2	Respond to of 132070

Glen, I don't know about EVI but if these debentures are convertible then this is potential dilution by 18.9 % 7/37 assuming the stk price rises and is converted so eps will be reduced. There is also the cost to service the debt in the meantime. It depends if the money is put to good use i.e.. expansion and a lot of other factors. I think you said they are into oil service . The price of oil is a major factor . One could make a case for rising oil prices due to global industrialization or one could make a case for stable to falling prices due to global economic recession or depression which seems more likely to me. Ask a Texan (MB or Steve) about the impact of falling oil prices. One wild card for oil is it is priced in US dollars if the Arabs ever decide to price it in some other currency or gold then sales of mopeds and wool blankets will soar -g- so invest in China(mopeds) and New Zealand (wool) . Mike