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Strategies & Market Trends : IPPs and Merchant Energy Co.s

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From: geneve12/20/2005 10:24:35 AM
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to Larry S.
This is the first post I've made on SI. I have followed your thoughts on this board.....did well on rri, gave it back on mir..and now read BDBBR assiduously. I have been thinking in broad terms about CPN. All it's problems are well advertised but of such complexity that they defy analysis. The simple and perhaps overiding facts are these: They will enter a chapter which will be lengthy.. years;in chapter certain contracts may be abrogated; the current national market for Natural gas is dynamic, meaning that predicting its status 3 years out is impossible; CPN owns the most efficient gas driven electrical generation in the US; there are several legal theories that suggest that their present predicament is the making of a conspiracy by several states, PUCs, and utility companies.All of this is to say that it is possible to project a positive outcome for the equity..currently featured at 25 cents. Simply based upon the volatility of the variables, if a positive outcome were to emerge the reward could be huge because of the leverage at work. I'd be most interested in your thoughts, and any direction you could point me to become more educated on this hypothesis...the time to buy is the first print after the BK announcement Thanks CSC
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