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

To: Razorbak who wrote (45338)	5/23/1999 10:32:00 PM
From: Robert T. Quasius	Read Replies (1) \| Respond to of 95453

I made a lot of money on KCS Energy several years ago. Recently, I started looking at KCS again, but avoided it like the plague. I have been buying some battered small and microcap E&P companies lately, but with much better chances of survival than KCS. KCS is finished IMHO. I take a hard look at whether these companies have made all their debt payments and remained cash flow positive or at least break even. The big ceiling test write-downs of some stocks stemming from extremely low commodity prices at year end 1998 are an accounting and tax anamoly that unfortunately triggers loan convenants for some small fry like MEXP. In cases like that, there can be some undervalued gems to be found. If the write-downs come for other reasons, or a company had substantial negative cash flow, then I tend to avoid them.

To: Razorbak who wrote (45338)	8/17/1999 12:07:00 AM
From: Razorbak	Respond to of 95453

Altman Bankruptcy Predictor Analysis - KCS Energy, Inc. (NYSE:KCS), Rev. 1 Now this is a classic death spiral if I've ever seen one... 12/31/97A, Z-score = 1.54 = "Near Death" 12/31/98A, Z-score = (1.10) = "Near Death" 03/31/99Q, Z-score = (1.08) = "Near Death" 06/30/99Q, Z-score = (2.14) = "Near Death" #reply-10977376 Strictly my opinion, of course. Invest at your own risk, either long or short. Razor PS - More bad news today, I'm afraid. S&P cuts KCS Energy ratings to D biz.yahoo.com (Press release provided by Standard & Poor's) Monday August 16, 5:26 pm Eastern Time NEW YORK, Aug 16 - Standard & Poor's today lowered its senior unsecured debt rating for KCS Energy Inc. to 'D' from double-'C' and its subordinated debt rating to 'D' from single-'C'. The company's corporate credit rating remains at 'D'. The ratings action follows KCS' failure to make $13.8 million in scheduled interest payments on its $150 million senior unsecured notes due 2003 and $125 million subordinated notes due 2008. On July 29, 1999, KCS signed a forbearance agreement on the bank facilities that commits the company to make monthly principal payments on the facilities of $2.5 million commencing July 31, 1999 and to dedicate a portion of proceeds from asset sales to pay down bank debt. The agreement, which is effective through Oct. 5, 1999, precludes KCS from making interest payments on its notes. Since May, KCS has repaid $23.3 million on the bank facilities, but $126.7 million remained outstanding as of June 30, 1999 when the borrowing base was lowered to $91 million. KCS continues to work with financial advisors on a restructuring transaction that would result in a deleveraged balance sheet, Standard & Poor's said. PPS - Palindrome grub.