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To: Gator II who wrote (373)	5/21/1998 11:54:00 AM
From: bw	Respond to of 14427

Gator...Here is one of my favorite HEC articles: caq.com

To: Gator II who wrote (373)	5/21/1998 12:06:00 PM
From: Thean	Read Replies (3) \| Respond to of 14427

Gator, My investment philosophy for SEV is like the drillers where I think the long term trend is up but there will be many short term cycles. The short term cycle for SEV is dictated by the timing of new find, news release, work delay, etc. The general rule of thumb is when there is news pending, SEV moves up. When there is no news, SEV moves down. Therefore, the best approach to handle this kind of trading pattern is to trade and not hold long term (my style). In particular, own some stocks, sell calls, and then sell put. I learned my option trading with SEV and so far it has been very rewarding and allow me to sleep very well regardless of which direction SEV is heading. It is all short term. Longer term, after SEV have delineated their field, their fair value should be above $50. As to the concerns for SEV, I fully agree. However, one needs to make a judgement and decision as to whether one is investing for profit with due risk/reward or for the company and management. Let me say the management at SEV is not the most experienced but I would also say don't let them prevent the opportunites to profit from trading it. bw mentioned about the larger float of HEC vs SEV and with that I also would not trade HEC but rather SEV. Another way to invest in SEV is to say, OK, I am buying a number of shares and I'm locking it away until the second half of 1999 when the company shall be sold and let's forget about all the volatility. bw - the best strategy at this point is to buy the stock and sell the June $22.5 or $25 call immediately. The premium is >10% and this is FAT. To me this is mostly reward and very little risk. LT - maybe you should shed some light into your current thinking. I notice you have become lazy - all one liner and no reason. Are you tired? : )