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

To: Zeev Hed who wrote (3455)	8/23/1998 5:07:00 PM
From: Razorbak	Read Replies (1) \| Respond to of 5504

Share Buy-Back or Dead Cat Bounce? <<I read your last post and could not find a single reference to a barrel of oil, or for that matter a floorless instrument.>> Sorry, Zeev. My apologies to you and the rest of the thread. Perhaps I was subconsciously shying away from subjects about which I know very little? <vbg> <<As for HEC, it seems that $4.5 is presenting some serious resistance here. Do you think the Company has started buying shares and the mini rally reflected this buying, or is this simply another DCB?>> Complicated question. Wish I knew the answer, but let's dissect for a moment. For the first of your queries to be true (re: Share Buy-Back), one must believe that the company will actually use some of its newly financed monies to buy back its own shares. I don't think that was the intended use for the financial proceeds. Despite the recent press release, I actually believe that management will instead use their newfound war chest to finance their aggressive E&P program, which was their original intention. On the other hand, for a Dead Cat Bounce (DCB) to occur, one must likewise believe that the cat is first dead, right? <g> Actually, I'm not that negative on HEC's prospects. I don't think the stock is "dead"... just very unhealthy, and primarily due to the f*******s debentures. From a valuation perspective, the stock price is not nearly as inflated as it was last year. Suffice to say that I don't think the stock will drop to zero immediately, but I do believe that it will continue to fall over time, due principally to the debentures, barring any huge commercial finds on the near horizon. It may take a while, just like AIPN, but IMHO the end result will probably be similar. Razor