John Pitera's Market Laboratory 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.

Strategies & Market Trends : John Pitera's Market Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: All Mtn Ski who wrote (4957)	10/24/2001 11:03:08 AM
From: John Pitera	Read Replies (2) of 33421

Hi Tom,. I imagine book value could be coming down on ENE due to the reduction in equity that occurred last week, as well as the other balance sheet questions. There is obviously some concern in the market that ENE is a house of cards. If we start hearing that counterparties are pulling credit lines, and the other credit agencies want to review their ratings that would indicate Possibly bigger problems. Message 16549806 some notes from the above post: I think you raise some very good points, part of the concern is since ENE is engaged in trading, the traders on the other side have counterparty risk with ENE, if the trading partners reduce those the exposure to ENE trades or stop trading with them all together then that's very bad news. ENE also has to engage in asset sales to pay off notes due in 20 months, and may have to issue more stock, thereby diluting earnings. The bear case is that ENE has a much bigger pyramid of bad trading and bad investment decisions that they have been trying to conceal.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next