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To: Shack who wrote (64470)	2/3/2001 2:24:52 AM
From: patron_anejo_por_favor	Respond to of 436258

HO HO HO! Get DOWN! The commissar's (Davis) in TOWN! HO HO HO! www2.marketwatch.com Davis seizes SoCal Edison contracts By Lisa Sanders, CBS.MarketWatch.com Last Update: 9:04 PM ET Feb 2, 2001 SACRAMENTO (CBS.MW) -- Calif. Gov. Gray Davis seized control of power contracts worth hundreds of millions of dollars late Friday before they could be sold to pay off Southern California Edison debts. Davis took the emergency action after the struggling utility lost a court fight to retain control of the so-called "block forward contracts." The contracts give the holder the right to buy electricity at a set price and had been pledged as collateral against $215 million the utility owed out-of-state power generators. The state has been buying high-priced electricity on the spot wholesale market since mid-January to prevent blackouts in the state because SoCal Edison and Pacific Gas & Electric are near bankruptcy and can't get credit to buy more electricity. "I am using my emergency powers to seize options to buy very inexpensive power that would otherwise be lost forever," Davis said in a statement. "These options will provide reliable power through the end of the year. It is important to protect these contracts for the people of California." Davis' move is another dose of bad news for out-of-state power generators, which already are worried that they'll never see the billions of dollars owed to them by Edison and PG&E, the state's biggest utilities. A state court judge in Los Angeles had ruled earlier Friday that the California Power Exchange could liquidate the contracts immediately. The contracts were pledged against debts owed to electricity generators that sold power through the state's defunct power exchange. Edison International's (EIX: news, msgs) Southern California unit defaulted on those debts last month, but it won a temporary delay when the state attorney general's office intervened in the case a week ago. On Monday, a San Francisco Superior Court judge is expected to act in accordance with his Los Angeles counterpart and allow forward contracts belonging to PG&E to be sold to pay off creditors, said Jesus Arredondo, a spokesman for the power exchange. An injunction prohibiting the CalPX from liquidating those contracts expires Monday. Also Friday, PG&E (PCG: news, msgs) and SoCalEd defaulted on $700 million worth of payments due the California Independent System Operator. PG&E owes $611 million and SoCalEd owes $90 million for real-time energy usage from mid-November to mid-December. The ISO is supposed to pay power providers Monday. Why anyone would negotiate long-term power contracts with this bozo is incomprehensible! Got hot tub socialism?<G>

To: Shack who wrote (64470)	2/3/2001 12:24:59 PM
From: mishedlo	Read Replies (1) \| Respond to of 436258

I am looking back at March, Aug, Oct, and Dec where 3, 4, 5, 7 days down in a row was norm. We were up, probably 14 out of 15 days in one stretch in Jan. Playing for a second down day in a row does really not seem so extreme to me. 2 scenarios. We gap up and it gets sold, or we gap down and I have to decide whether or not we rally from it. My personal guess is we gap down slightly and we just keep falling. RIMM oversold. Give me a break. Sporting a PE of 1200 or so, it will be oversold when it falls to $10. (yes I do know what you are saying, but except for the last few dipsters who will be buying this POS). If we gap up, yes you can buy PUTs back if you are quick enough but possibly for no more than you sold them for, unless you are counting on a 50 point rally. Are we really back in bull mode - 3 days up 1 day down? Has the bull market returned? If so, we should not be messing around with PUTs at all but buying calls on the one down day out of 3 we get. As for the TICK count, I could care less what it closes at in general. The lowest it got was -590 on Friday, not even a good case of fear. Why? Because the dipsters were out in force. The 52 week tick count on the NAZ seems incorrect to me. I believe we hit -1400 or something last March and I believe these counts were shown in Dec. I am positive we hit -1200 or so at least 3 times last year and -900 maybe 30 times. As long as there is complacancy, and bullishness, and dipsters in the face of these declines they will keep happening, until some real fear is shown. We have had a 700 point rize on the Naz or so with no retest of the bottom at 2200. I am prepared to reverse course and sell some of these PUTs on Monday should I be wrong, but I am not playing for a crash. Just a nice healthy 3 day correction after which I decide what to do. That said, yes I do see a decline of several hundered points as quite likely. M