Mr. Pink's Picks: selected event-driven value investments Message Board

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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: Kevin Podsiadlik who wrote (17179)	10/11/2002 2:24:41 PM
From: ItsAllCyclical	Read Replies (2) of 18998

Quoting Cramer? Oh brother. He's very rarely ahead of the curve. Look at EP's annual report. Only 34% of their EBIT comes from the merchant trading business. Write that down to 0 (which I doubt) and you still have significant assets that far exceed their debt. Look at my previous posts and do the math. Lumping EP in with Enron is a classic Cramer move. I remember just a few years back when oil was $12. Cramer was short the entire initial move. He then totally missed the gold move when the markets fell apart. He finally embraced ABX the biggest hedger...LOL. If there's one sector Cramer just does understand it's the energy sector. Have you bothered reading EP's response to the FERC ruling? elpaso.com FERC ruling is dangerous legal precedent if it holds (very doubtful): biz.yahoo.com "It raises a question in particular over whether or not a pipeline has the discretion to reduce capacity for maintenance or safety reasons," Welton said. Worst case scenario will be a compromise of some sorts. Am I holding out for $60 to $70 again? Hell no. At $15-20 I'll be gone with most of my shares. EP is selling some of it's assets which means they're unlikely to trade back to their former highs any time soon, however, it also means they're preparing for a worst case scenario and they won't be going BK with 5 bil in cash and their asset reserve. This is a gift long at these levels. Short of BK, the bad news is more than priced in here. It was a great short at 70, 60 and 50. I just think the "short side" is old news here. As the facts come out El Paso will be differentiated from the DYNs ENEs and IPP's out there.

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