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

To: Ed Ajootian who wrote (3254)	7/16/1998 11:00:00 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 5504

Ed, I am trying to find an example where a floorless was followed by rising stock price. One does not know a priori how much a stock will fall following a floorless, and the general condition of the company has a lot to do with that. What history teaches us is that almost invariably, the stock will dive after a floorless has been issued, in some cases, to 10% and even 1% of the value before the floorless. All I am saying is that the presence of a floorless is a big red flag. Beware. One the neat little tricks used by those manipulators is to cover partially their shorts and induce a fake rally, which then allow them to reshort at higher prices. Todays action might actually be such an exercise, the phony P/W soothing note (no "botomless" instruments) might have very well been organized for that end. As they used to say, just because you are paranoid, it does not means that THEY are not following you (VBG). I think that HEC might be overpriced relative to its peers anyhow, and thus a floorless will be doubly damaging. HEC has a market cap in excess of $500 MM with not much in term of proven reserves. OIL has 3 billion Barrels of oil and 7.5 TCF of natural gas in proven reserves and its market capitalization is only $1 billion or twice that of HEC. Zeev