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To: gmccon who wrote (32196)	11/28/1998 9:19:00 PM
From: dealmakr	Respond to of 95453

gmccon, When the PKD/SESI merger becomes effective the stock prices will draw to parity on their ratios. One share of SESI for .9 share of PKD. If you see a big discount such as we have here it could mean more weakness ahead for PKD. The low volume might also mean that the arbitrage boys have bigger fish to fry without the inherent risk of trying to time the commodity relationship that exists in this sector. Risk arbitrage works by buying one side and shorting the other to take advantage of any discrepancy in pricing. It also depends on the time factors involved. By shorting PKD and buying SESI an arbitrage situation is put into effect due to the discount of SESI to the .9 share exchange for PKD. JMHO. Good Trading Dave