Mirant Corporation (MIR) Message Board

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Gold/Mining/Energy : Mirant Corporation (MIR)

MIR 23.41

-1.2%

Dec 31 3:59 PM EST

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To: Oeconomicus who wrote (252)	2/23/2002 6:11:23 PM
From: Braincramp	Read Replies (2) of 903

Disposal value is relevant, especially when assets are sold at a loss, as in what is going to happen in this industry. You may have a Masters in Business, but you are blind to the reality of what makes a company continue as a going concern. As an investor you have to take all things into consideration. The reality is that if your assets are worth 50% less in todays market than they where a year ago, what your book value stated at that time will not amount to one plugged nickel. So, if current market conditions require that Mirant has to sell assets, at a loss, we will see how long they stay as a going concern. As the collateral evaporates because of the downturn in the market they will be forced into a corner by the banks. That's reality. The rest is accountant hogwash which has got us into this predicament is the first place. The next thing that you need to realize is that as assets are being sold off at discount prices, the companies buying these assets will be able to generate power at far less of a cost. This puts companies like Mirant in a precarious situation.

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