drifting a little... quarterly out next, page-19

I remember hearing that the reason PSA was so keen to emerge from the reconstruction with the database was because there are an extroardinary amount of good prospects mapped on these leases. From memory, it was around a hundred leads.

I was especially impressed with the way PSA went away quietly and efficiently put its first three discoveries into production. It may have spent $20 million this year but it has been extremely well invested. It would be good for the company to remain debt free this time and spend some of the free cash flow chasing these good growth prospects.

It will be interesting to see what Rivkin does with this information, after his interest in the stock last year. He went very quiet after recommending the stock at his travelling roadshow.

As for management and their track record, after emerging from the near death experience with $26m, they could have sat back and had long lunches for the rest of their careers and not risked the same sort of embarrassment over again. Or paid out the cash and retired. It looks instead like they may have learned from it all. I like the fact that Terry has so much invested in the stock.

Good luck!