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

To: Razorbak who wrote (3438)	8/17/1998 10:42:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 5504

Razor, Good to have you on this thread, even though I don't agree with you on HEC. I remember your posts on some of the other O&G stocks and they were good. IMO HEC has more than enough cash now for its operating and investing needs, so it sees fit to give some of that excess back to the shareholders in the form of buying back a bit of its stock. They are confident that they will be able to go back to the capital markets and raise whatever other cash they will need in the future without diluting their shareholders. When they raised the cash from the earlier convertible note offering this year, they had not yet hit on their Bolivar wells and thus did not know that they would have such a huge bankable oil field on their hands, that they would be able to borrow on within a year. I would venture that HEC has not bought a single share yet. I am betting that they are waiting to see what happens with the Islero well. The last time they drilled a well they had volume of a million shares a day for two weeks straight, around the announcement date. That would allow HEC to buy a good chunk of the 5 mm. shares that they indicated they were looking for. The fact that HEC's stock price is holding up this long after the spudding announcement is very bullish IMO. It is a clue that folks are still trying to build positions in the stock, and most of the hype players are gone or at least in hybernation.