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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: AL R who wrote (5544)	11/5/1998 6:17:00 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 24925

AL R/Share Consolidations From your experience would you say that the negative effects of a share consolidation, say 5:1, plus having a shitty chart, would usually overcome other very positive news happening right around the same time? With all due respects to the great VSE market, my impression is that the news of the company's plans to switch to a US company would be viewed as being positive by the shareholders. Benz wasn't planning to put any press releases on this but I convinced their IR guy that it is positive news and they should publicize this news. Of course in the same release they will also announce the proposed share consolidation. Sure will be interesting to see what happens to the stock after that! Benz also will be soon announcing some positive news about their debt situation, I believe. Not sure how much effect this will have. In any event, thanks for all your thoughts & advice. I've been buying this turkey like its goin' outta style for the last several weeks and I'm still not finished. It is heartening to hear that there oughtta be a lot more stock shaking loose in the coming weeks. Also between my buddies & me there is still around a quarter million $$$ out there waiting to get pumped into this turkey as soon as the stock comes onto the market. We will need all the sellers we can get in order to get our stock at a reasonable price. Today the only seller was Levesque, who is the main market maker and is on our side I'm told. This seems strange given the fact that the share consolidation is now public knowledge, the stock has a horrible chart, and we are in peak tax-loss selling season. Hopefully we'll get some sellers tomorrow.

To: AL R who wrote (5544)	11/5/1998 8:12:00 PM
From: Kerm Yerman	Read Replies (3) \| Respond to of 24925

Al R / Share Consolidation Al, I agree with you wholeheartedly - but it might not apply in this case. I don't know if this has been mentioned before, but I suspect Benz is consolidating shares to meet the minimum dollar/per share amount required for listing as a regular NASDAQ company. Last I remember, $3.00/share was the minimum. I also remember seeing someone comment that this was not a Canadian connected company. That's not accurate. They may have drilling activity solely in the U.S., but company management is basically Canadian people. As I have expressed before, key officers don't always have their shareholders in mind. They have a history of growing a company and reaping the benefits in the form of options, which they are pretty free to declare each and every year. Meanwhile, shareholders end up holding shares that appreciate very little on a year to year basis. In these trying times for oil and gas producers, it would be wise to go with proven producers with a successful record regarding increases in reserves, production and low operating costs. In addition, debt is an important consideration. There are just too many companies in this category to consider - over that of those in a situation as Benz. The company may prove to be a winner, but there is a great extent of speculation behind one's investment into the company. Regarding listing in the USA. I am not too sure this is a positive situation. I'm directing the comment to the small and unproven type company. I can't think of a single company who delisted on a Canadian Exchange, in order to be listed in the U.S., where share prices benefited. There was Arakis Energy, who experienced a great rush in share appreciation - but ended up in the trash can in time. A lot of people got hurt there. In addition, Arakis was an internatioanal junior which gave the company leverage for speculation. Can you think of one company who made this move and are considered successful today. I can't.