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Gold/Mining/Energy : Harken Energy Corporation (HEC) -- Ignore unavailable to you. Want to Upgrade?

To: Timelord who wrote (3092)	7/1/1998 10:21:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 5504

Alex, you can make money on floorles, but you got to be nimble. I did it on EXSO (and yes on the long side), and my first encounter with a floorless was when I donned the $2 man hat and luckily identified the end game of the floorless to get a very nice triple bagger. I am not following HEC closely enough to try that game here because I do not have a good "feel" about it as ts long time followers have. There might be a price were I may be persuaded that the :chnace of them having a billion barrels find outweigh the risk of dilution. After all, if the convert finally pounce at let say $2/shae, then we will have instead of 130 MM shares 155 MM shares, and with a billion barrels proven that can still support a capitalization of maybe $6 or more (depending on the price of crude). I just think that people should be aware that companies issue floorless as a last resort, and that this usually indicates a very weakened financial condition (Arakis was on the verge of bankruptcy). Zeev