CPN, MIR and DYN
This morning I jumped between conference calls hosted by both Calpine and Mirant. (I have long positions in DYN, CPN and MIR. Mirant is headquartered two blocks from our office here in Atlanta, and my colleagues know some of the senior officers).
The CEO and CFO of Mirant said the following:
1. EPS in 2002 will be $1.60 to $1.70, reflecting the new plan to cut back.
2. MIR will not need to access either the debt or equity markets during the next five years.
3. Restoring investment grade is essential, and negotiations / discussions are in process.
From a TA view, Mirant sucks. But from a pure FA view, at less than 6 times current year EPS, MIR looks like a buy.
Calpine also sucks from a TA view, but like MIR it trades at a P/E of less that 6 times current year EPS. Management outlined liquidity enhancement programs; construction loan revolving lines of credit are sufficient through mid-2003. Like MIR, CPN is focused on restoring its investment grade debt rating.
At $24, DYN trades at 12.6 times EPS ttm, and about 10.7 times current year EPS. |
