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Gold/Mining/Energy : Arcon Energy (MIDL Presently) The Ultimate Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: makin_dough99 who wrote (2070)	6/1/1998 3:46:00 PM
From: Jay Lowe	Respond to of 4142

>> The major difference I see I see half a dozens issues around the "P" split vs dividend ... and no real facts on which to judge the differences. The split is an accomplished fact, however, so we go forward from here. Not that I mind, eh? My focus is on the company's success ... Exxon is a good sign, but just a sign so far, there are many, many ways for Arcon to make the stockholders very happy campers. Even if NO large oil company EVER got on board, still Arcon could make a pretty penny on it's own with DF-144. I like to look carefully at downside issues ... I like to run all the possible disaster scenarios I can imagine through my mind and walk out the possible outcomes. Along this line of thought, I have developed a fantasy around Arcon hacing to go it alone "all the way to the pump" ... I have this fantasy about Arcon doing a JV with HIPC and an independent fuel distributor (various regional ones -- some states have strong independent retail). This is a slower development, but puts Arcon is a hugely powerful position ... imagine the negotiating leverage they would have when DF-144 enhanced Eco-Super with 98 Octane (e.g.) is being sold at 50 independent pumps in 3 states (Ohio, Kentucky, etc) ... imagine then that MTBE legislation hits the oil "bigs" who have been resisting. Now who get's to call the shots, eh? Either way ... one can play out a dozen scenarios ... only time will tell. The bottom line is Arcon's ability to produce an ecologically acceptable octane enhancer at a very competitive price point, in volume, at the distribution point, now. That's a very interesting position ... it will take some time for the industry to wrap itself around it.