Clown-Free Zone... sorry, no clowns allowed Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: pater tenebrarum who wrote (53910)	1/4/2001 9:48:39 PM
From: Cynic 2005	Read Replies (2) of 436258

More on CPN and another source of trouble - Paul Allen's collar on Microsoft shares. <<SUBJECT: DYN and CPN ADD TO FAVORITES: *You must be logged in to use favorites THIS THREAD THIS POSTER THIS POST BAN POSTER AUTHOR: wrs DATE: 1/4/01 7:32:27 PM STATS: 12 reads 0 replies Bear Trader, I did my homework and figured out that DYN and CPN are creditors to PG&E. DYN I think is a big risk, they only have 97 million in the bank and a 1.1 debt to equity ratio indicating they are already very leveraged. The other day I said that the suppliers not being willing to provide anymore energy to PG&E was more an indication of their weakness than that of PG&E. It turns out that for DYN that is absolutely the case. From their cash flow and margins it looks like they are in the energy grocery business. They turned 24.1 billion in sales into a 900m EBITDA and a 404m net revenue. The profile says they are an energy wholesaler. However, what is interesting about the numbers out of PG&E and SCE is that they supposedly have 11b in money owed on purchased power so far this year. They have payments due of 1b in the next three weeks or so. They have no access to credit right now because the CAPUC only gave them the right to a 10% rate hike which doesn't improve their debt rating. This is one of those situations where we have dominoes that will just continue to fall. It looks like default will cause Dynegy a big shortfall and it might have to default on some of it's short term debt. CPN may be in a worse situation from the exposure standpoint but they have 1b in cash still. They also are a higher margin business but have more exposure because they own two plants that have been providing power to PG&E. Maybe Al was really worried and pulled the lever and he probably was but what about the collars that Paul Allen recently bought for $53/share on MSFT.....Since then the stock dropped from the 50s to 44 and conveniently bounced back to 59 on this latest short squeeze. I was reading in Flecks column where he heard that G&S had provided the collars. What do you know about that? That would also be a reason for the short squeeze because if Paul Allen needed to raise money for some other problem with his portfolio, he might have started cashing in some of those collars. What do you think about that? >> prudentbear.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next