Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zeev Hed who wrote (3180)	7/9/1998 12:00:00 PM
From: Henry Flemming	Read Replies (1) \| Respond to of 5504

Zeev: I have been an investor in Harken for over 5 years and have accumulated, what for me, is a substantial position in this company. I have followed the "floorless controversy" over the past week with great interest and concern. You have posted factual information from Harken's 10-K. I have considerable respect for your market insights and experience, having followed your postings on this and other threads for the past 2 years. Yesterday, I asked my broker, who has substantial personal holdings and many of his clients in HEC to call Mike Faulkner and find out what he could about the "floorless" financings. Faulkner said that the investors who put up the $31.5 million last October and December are friends whom he has known personally and worked with over the past 5 years. $25 million of this was invested by a private investor group called ENCAP. One of the pricipals in ENCAP is Gary Peterson who sits on Harken's board of directors, so obviously he is an insider and must disclose any intention to sell or sell short. Faulkner also said he is familiar with the damage which "floorless" financings have caused to other companies but assured my broker that HEC would excercise its' option to take out these investors for cash if he perceived any intention on their part to short the common against their conversion rights. He also said that HEC has $200 million in cash at present. Faulkner pointed out that the private investor group cannot exercise their conversion right until after 3 wells have been completed on the Cambulos and Bocachico prospects and that he anticipates a much higher stock price after these completions. He feels that HEC is way undervalued in today's market based on the company's recent drilling successes, thinks it should be trading in double digits, and would elect to pay cash rather than convert any of these private investors at today's undervalued stock price. I feel more confident after hearing these words "straight from the horse's mouth", but each investor must do his own due diligence. If you question the veracity of this posting, call Harken at 972-753-6900 and speak with Mike Faulkner or CFO Bruce Huff. They need to be aware of investor concerns and perspectives. I appreciate your focus on the details of these financings and the red flag alert but I intend to maintain my long position. Best, Henry

To: Zeev Hed who wrote (3180)	7/9/1998 1:19:00 PM
From: Gator II	Read Replies (2) \| Respond to of 5504

Thank you for offering to respond, Ze'ev. I must go back over the posts, but for starters, I have listed a couple of questions below for which I don't think responses have been provided. Also, as several other posters have studied this situation and asked questions, they undoubtedly have some of the same concerns and questions that I do. Hopefully, they, too, will present their specific questions during this window of opportunity with you. That means you, too, Dr Doom and thank you for your more detailed review of the SEC filings than I feel qualified to do. Thanks Ze'ev, Gator II 1. Specifically, how do the shorts profit? 2. Please name one example of a company ruined by the floorless (not by business conditions). **More, to follow (if not previously asked by others), this evening or tomorrow morning.**