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Gold/Mining/Energy : International Rochester Energy Corp. (T. ROH) -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (298)	12/30/1997 9:04:00 PM
From: Ed Ajootian	Read Replies (2) \| Respond to of 934

DD, Quite spectacular timing with that last buy! Always neat when you close the day up 13% from your buy, on huge volume. Do you realize you may be one of the last suckers to have ever acquire this stock for under C$1.65? I just can't see it dipping back to those prices, not with today's explosive volume. The only way that would happen is if the Estero #3 is a dry hole, which is probably less than a 1 out of 10 shot. This trading activity just boggles my mind though. This is _exactly the same company that it was a week ago. A week ago you could have quietly and calmly bought all the stock you wanted for $1.60. Now, why didn't the mental midgets who are voraciously snapping up stock for $1.85 now, buy the stock a week ago? At $1.85 the stock is exactly where it was when the venerable Ron Struthers recommended it in his newsletter (Resource Stocks Advisory). So if he liked it for that price then he ought to really like it now that the next well has been spudded and Mikel has bought the surrounding acreage. I understand your logic in comparing the farmout terms but IMO the logic is faulty because both the risks and the rewards of drilling in the Alcaravan vs. the Middle Magdalena Valley are entirely different from each other. I believe there are certainly some general ways to compare the market cap. of HEC to that of ROH, which would show dramatic differences in the valuation of the two companies. One approach to this would be to see the total net potential reserves ROH is gunning for and divide that by the total net potential reserves HEC is gunning for, and then multiply the product by the market cap. of HEC. Something tells me you would have a value of 10 times the current mkt. cap. of ROH.