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

To: drjoedoom who wrote (3151)	7/8/1998 8:11:00 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 5504

joe, what you fail to see is that a company that needs money so badly that they yield 6.4% of future production (on those 3 wells), on top of that they have to offer 15% to 25% interest for that money and on top of that they have to offer conversion in a floorless fashion, is exactly the hallmark of other companies that went the floorless way. All those other "demerits" are the reason those other companies went the floorless route, lack of choice. Thus, when a company goes the floorless route, you must have extremely strong arguments on the other side to dissuade you from doing what Bruce did, deciding that it is not worth to even look at the rest of the data, since a floorless is the hallmark of financial troubles brewing. Mind you, none of the other floorless I have seen had such punishing interest rates attached to them. Since you have done a much better due dili than Bruce, why don't you tell us what compelling reasons there are to invest in HEC. Their valuation at $4.5/share is kind of reach relative to cash and proven reserves. An elephant field would be nice, but so far they have hit only very small fields, why should they have an elephant? Anyone else there has an elephant? Zeev