Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (40509)	3/21/1999 1:16:00 PM
From: Razorbak	Respond to of 95453

ROFL. Ok, I guess I deserved that. :-) Razor

To: Big Dog who wrote (40509)	3/21/1999 2:11:00 PM
From: VLAD	Read Replies (1) \| Respond to of 95453

Can anyone here who is knowledgeable in banking/financing comment on FLC's $1 billion junk bond offerings? My impression was that this was a positive for FLC share holders since many were wondering where the money would come from and feared dilution via a stock offering which we now know wont happen. Can FLC pay off these notes early if they desire? I noted that these bonds had a pretty high yield of 11 to 12% which IMO is ok while FLC finishes up its 9 construction projects. I know nothing about junk bonds and the rules and regulations behind them. I assume they are the same as a corporate bond except they are much more risky since they are unsecured and thus give a much higher interest rate(risk vs reward in the bond world). Please enlighten me if you know how this entire financing vehicle helps or hurts FLC. I assume as long as oil prices hold above $14.00 the junk bond deal was good for FLC??

To: Big Dog who wrote (40509)	3/22/1999 3:51:00 AM
From: articwarrior	Read Replies (2) \| Respond to of 95453

There is a major problem with using the Altman evaluation model of bankruptcy for predicting BK of oil and Gas stocks. New evaluations of assets based on a sliding scale of commodity prices have artificially depressed asset value. Most company reports released recently has suffered from this effect. The price of oil and gas is a major weight in calculating NAV. Better to look at Moody's bond ratings and adjustments of bankruptcy risk then the Altman model for Gas and Oil stocks.