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Gold/Mining/Energy : CPN: Calpine Corporation
FRO 24.17+2.2%10:37 AM EST

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To: Raymond Duray who wrote (107)8/15/2001 2:12:04 AM
From: Daniel G. DeBusschere  Read Replies (1) of 555
 
CPN PE is closer to 15 than 20-
The CPN CEO claims that current guidance is over $2/share for the current fiscal year. At $31.50 PE is closer to 15 than over 20. Using the CEO's guidance of 40% year over year earnings growth, CPN should have a PE of 40 with a PEG of 1. CPN is now in the process of educating the street that they should view CPN as a growth play. So far, I like what I see and will buy more if the CEO stops selling his options. I don't think CPN has any real liability with respect to the California energy political environment and the anticipated FERC refund directives.
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