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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Pilot who wrote (6049)	6/16/1998 7:19:00 PM
From: Sergio H	Read Replies (2) \| Respond to of 29382

Pilot, in all due respect I think that you may be missing the point on FMR. The bad news, some of which you cited, is already known. The play on FMR is based on the economic value and distribution to the unit holders after the trust is terminated as will happen in 1999 as per the terms of the trust. I'm not able to put a value on that, but those that are playing FMR must believe that the parts are worth more than the whole. Sergio

To: Pilot who wrote (6049)	6/16/1998 9:18:00 PM
From: Paul Lee	Respond to of 29382

Pilot, to say FMR is not somewhat speculative would be foolish, remember it is an oilplay and right now the world hates oil, and of course there is always a chance a well can blow out, that being said consider the following: 1. Very few people understand the real story--(thus true value not realized). Read the Coastal report of Feb 4, stating the initial find. Look at the Coast annual report where they state this field was on of its biggest finds of the year. Read the Trust's march 10q, and understand that the flow numbers the trust is reporting is only from 6 wells, they expect to have 18 on the lease by year's end. 2.Understand that IMC global has the working interest which FMR has a 90% royalty. That means IMC paid 100% of the cost and will only receive 10% of the revenues (after their costs are reimbursed). Why do you think they would take that risk if they did not think this field was huge. 3.As you pointed out, Wheeler Sears is attempting (at his own expense) to have the trust converted to a Corporation so the value of the trust can be exploited, as under the rules set up now it could be terminated prematurely and true value would be unobtainable. There are more you should know, and i'm sure more questions you may want to ask, and i'm happy to oblige, however let's do that on the FMR thread (si or yahoo), because this thread is too "cluttered" with a lot of other ideas. (honestly i just don't have the time to read thru all of them) Hope to see you later.