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

To: Greg Burton who wrote (4122)	2/1/1999 9:39:00 PM
From: Arktic	Respond to of 5504

Great discussion re: HEC. If in fact Faulkner is picking up 100,000 shares with his own pocket change, I feel like I'm in the driver's seat! This is not a trivial purchase. Re: capex... Greg, capital expenditures in the oil patch mostly occur on the front end (drilling followed by surface production facilities and pipelines to carry the oil "downstream"). No revenues until the oil can be sent to port or the refinery. The beauty with the oil patch is that once you get past those initial expenditures, the revenue stream vs. expenses makes up for lost time. Of course, if HEC can't pay for the capex, then no revenue stream. We'll see but I suspect the management at HEC is acutely aware of what they are doing and have no plans of fumbling the ball at this juncture. Paul L. Craig P.S. Re: "Floorless"... there's a huge discussion of this topic which begins when HEC was last at about $4.50. Zeev sent me a message at that time which was followed by a heated debate of the issue.

To: Greg Burton who wrote (4122)	2/1/1999 11:26:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 5504

Greg, I see that Paul already came to the rescue on this subject, and he is a much greater expert on this then I. As for floorless, there is a thread on the subject here on SI (use the search engine with "floorless"). In one of the first few posts there, I gave a broad and general explanation, but each situation must be studied separately since the "Wunder kid" of wall street are constantly innovating these instruments, just to make us simpleton investors poorer. Zeev