Baycorp Holding- HoustonSreet (MWH) Message Board

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Technology Stocks : Baycorp Holding- HoustonSreet (MWH)

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To: debrahaugen who wrote (8)	3/31/2000 11:09:00 AM
From: add	of 14

10-K filed, some interesting tidbits. Market for electricity: $70B traded last year, 70% or about $53B traded in the market place the rest between utilities directly. Only 3 states w/ 13% of the consumption have deregulated electricity pricing, 18 more states representing 35% of the overall consumption will soon do so. -> Market could be about $500B in a couple of years with maybe 75%-80% traded through some exchange. MWH gets between 1 to 5 bps. If we assume the market average is 2.5 then $400B*.00025 = $100M in revenues per year in a few years. Not a huge, huge opportunity but a boost to current revenues are possible. HoustonStreet did $59K in revenues, 77% to Great Bay itself. At 2.5bp this represents $236M traded or about 0.45% of the amount traded through exchanges(using $53B). HS will not get a huge valuation from electricity trading but from oil products and natural gas which they also plan to do, they are also planning to go global at some point. They are looking for some big players in the NG market like Equiva for oil so we may see some deals later this year. Usage For electricity, they have 440 out of 1000 total traders and 9 out top 10 trading companies. Looks like they have a good sign-up and most people have access to the site. Now, can they get people to use it ? Financing Equiva put in $6M plus they will pay a min of $1.5 in commissions the next 2 years for OIL trading. They will also make market in it. Williams et all put in $10.6M. OK through October. --> Having Equiva make the market is a big plus to having enough liquidity. Will greatly facilitate volume for oil trading. Spent about $6.2M so far and planning another $20M this year to build out the site. ---> Very serious about creating a complete site! The most amazing item is that MWH has $225M in NOLs, $136M is restricted to being used $5.5M per year and the remaining $89 is not restricted. ---> MWH may have great value to a highly profitable company( >$10M/yr) who could use the NOLs to offset taxes. Look to possibly get bought out to unlock the value of the NOLs.

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