CPN: Calpine Corporation Message Board

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Gold/Mining/Energy : CPN: Calpine Corporation

FRO 23.73

+1.7%

Nov 6 3:59 PM EST

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From: Copperfield	9/9/2002 5:49:38 PM
	of 555

Calpine Slides as Analyst Calls Stock a Sell Analyst Andre Meade, at Calpine underwriter Lazard starts coverage of Calpine thestreet.com Meade said he based his analysis on Calpine's "questionable" growth strategy, high power plant construction costs, dismal earnings outlook and future liquidity concerns. Meade states that he finds Calpine growth strategy "questionable". At present about 25% of the fossil fuel power plants in the United States are obsolete. Burning natural gas in plants like this that waste more than 2/3 of the input BTU's of the fuel is a questionable practice. There is no over capacity problem - many of these older plants and simple cycle peaker units, often thirty years old should be mothballed, or torn down. I think that Calpine's strategy is right on. Their plants are technologically complicated and to build them at the pace Calpine has may have caused some cost over-runs in construction. It's true that the outlook for earnings looks a bit bleak right now and there may be some more financial problems ahead. But Calpine has a fleet of competitive, new, efficient power plants. If the government is not willing to formulate a national energy policy that would see the replacement of old inefficient wasteful plants of another era, then let market forces prevail. Isn't that what free enterprise is all about?

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