Hi Clement,
Thanks for you for your comments. You make some very good points. I don't want to give the impression of bashing Calpine, because I do regard it as a well managed company with an honest management. This being one of my prime concerns about any investment I might consider. I agree with Don B. that there seem to be better "stories" out there for now. <g>
Re: re: Chris Edmonds' article was somewhat jaded. Another article was published a couple of days later with the company's rebuttal point by point.
Do you happen to have a URL for the later article? TIA if you can supply that. I think that part of what may be going on in the media is a general throwing out of the baby with the bathwater regarding the children of deregulation. CPN seems well positioned, though it is my understanding that we are facing a surfeit of generating stations nationwide and particularly in California for the next few years.
In that regard, what a difference a year makes. I recall the manic market of December 2000, when an increase of $50/MWH in the spot and day ahead market seemed to be the norm, with prices in the hundreds of dollars per MWH. And up to $5,000/MWH in Washington State on one memorable occasion. Yesterday, the trading range on Palo Verde energy was all of 15 cents. And the price was below $30/MWH. In the face of this sensible and normal market, it's hard for me to get terribly excited about the CPN story. As I say, I think it's a fine company, but the industry itself is still going through some changes that will, IMHO, put a cap on CPN's revenue and income growth for the foreseeable future.
Thanks again for your comments.
Best, Ray |
