This stock would seem to be undervalued based on their recent oil find. Also, this stock has seen much higher prices before the oil slump--if it reach old levels it would be a nice pop. I bought a little at 24. Stock has trended down since then, I'm thinking of buying more. One concern I do have is I read of these dividends for preferred shares for OIL. Who holds the preferred shares and how much of OIL's cash is going to paying these preferred dividends?
The bulk of the preferred shares are held by Hicks-Muse, who recently bailed out the company. This stock is a buy and hold. It could easily double or triple in price over the next year after the deepwater discovery offshore Equatorial Guinea is brought on line in 2000. Short term the stock might pop a little later this month if the company books some E.G. reserves in 1999 or signs an FPSO contract in anticipation of production.
Matanuska,HM has NOT bailed out of OIL and in fact BOUGHT another 200,000 between $21 and $23 recently. This is the last chance for you guys to by this company this cheap BEFORE they release 3D seismic data on EG next year. My guess is that the stock goes IMMEDIATELY into the $30-$35 range and then you will NEVER see this stock this cheap again for a LONG TIME.Now is the time to add to positions in here. You've had some "wondow dressing" for the end of the year. Let's face it the stock has been a tremendous performer since January and it is only natural for some to take profits. The biggest move is going to be next year. Anybody selling this stock in here an idiot and they don't realize the potential of this company. Personally, I see this stock in the $50-$60 range next year.Buy more and hold ALL throught next year and you'll be richly rewarded.Go OIL (Nellie, I've been hanging on the yahoo OIL board, much more action and some really smart guys there.)
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