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Gold/Mining/Energy : CPN: Calpine Corporation
FRO 23.66-0.3%Nov 7 9:30 AM EST

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To: porphyrin who wrote (243)1/20/2002 12:05:12 PM
From: Howard R. Hansen  Read Replies (1) of 555
 
In a recent thestreet.com article by Peter Eavis on Friday January 18, 2002 he says Calpine is paying approximately $550,000 for every megawatt of capacity it adds. In June 1999 Ann Curtis, Calpine's CFO, said every megawatt of capacity Calpine adds to its portfolio of power plants adds $20,000 of net income. These numbers give a return on assets of 3.6%. Not very encouraging and implies if Calpine wants a high return on equity Calpine will be highly leveraged in the foreseeable future.
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