11 www.taipanonline.com JUNE 2004 came in at US$7.9 million from US$9.7 million. Both
were in line with prior EPS guidance of 20 to 24
cents per diluted share. Same-store sales were up
by 0.7%. And revenue from direct-to-customer sales
shot up a whopping 51% to US$26.6 million from
US$17.6 million.       As for the company’s future, direct-to-customer
revenue is expected to increase 30% to 40% in FY
2004 from FY 2003. And RSTO expects to be cash-
flow positive for a second consecutive year, with lit-
tle to no debt on the bottom line.       Regardless of the numbers, we’re following the
insiders, who seem to know a bit more of the inner
workings of RSTO than the average investor.
Considering they bought 193,000 shares over the
past six months, we’d say something is up and we
wouldn’t want to miss the boat. We’re issuing a speculative buy on shares of RSTO under US$7. Contact: 15 Koch Road, Suite J, Corte Madera, CA 94925, tel. 415-924-1005, fax 415-
927-9133, website:
www.restorationhardware.com.        It’s home to brown pelicans,
truckloads of party-seeking spring-
breakers, and thousands of miles of
coral reef. Some 4,800 feet deep in
parts, a sprawling canyon rivaling
Arizona’s majestic wonderland, it
also houses vast as-yet-undiscov-
ered reserves of oil and natural gas.       Kudos if you guessed the Gulf of
Mexico.                                        Between Mexico and the south-
ern borders of the United States, some 100 billion
barrels of oil and petroleum are estimated to lie in
very deep waters and shallow waters alike. Oil pro-
duction from the area has nearly doubled in the
past ten years and is projected to produce levels
upwards of 1.8 million barrels per day this year. The
Gulf of Mexico has become the second most impor-
tant reserve after the Persian Gulf.       We’ve uncovered one of the nation’s fastest
growing public oil and natural gas companies with
strong emphasis on digging and exploration in the
Gulf of Mexico—and if you act quickly, you can still
buy shares under US$10.00. Pumping dollars We all know that gas prices have taken the express elevator to the ceiling lately. In fact, today
marked the fourth straight day of record-breaking
prices at the pump. The average for regular gas
topped US$2. I can’t imagine how much it must cost
to fill up a gas-guzzling SUV when my little Hyundai
sedan is taking upwards of US$20 to top off.       Analysts predict that prices will hit the US$2.50 a
gallon range by summer. Demand is kicking into high gear, not only in the US as families pack up the
minivan for a good old-fashioned road trip, but also
in countries like China and India.       OPEC is threatening to cut oil production. And
although President Bush expresses concern about
the rising oil prices, he refuses to tap into the US
Strategic Petroleum Reserve (SPR).       As Christian DeHaemer wrote earlier this week,
“The SPR was originally set up in response to the
1973-74 oil embargo. It is the largest emergency
stockpile of government-owned crude oil in the
world. And it is almost full. But while politicos call
for a halt to further shipments… arguing that the
sudden drop in demand would ease gasoline
prices… the Administration steadfastly refuses to
comply.” Shifting locations The number-one oil source lies in the Middle East, mainly the Persian Gulf. But as the Iraqi war
and Middle Eastern terrorism worsen, there is a   In order to devote more of our limited print space to
bringing you profitable news and information, we are moving the  Taipan  classified ads to our website, www.taipanonline.com. If you are interested in advertising with us, please      email Sara Nunnally at
snunnally@agora-inc.com. Taipan'sClassifieds Drilling for deep profits as oil
production goes domestic Next, page… Erin Beale