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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Frank Pembleton who wrote (90958)	5/17/2001 6:01:44 AM
From: Frank Pembleton	Read Replies (1) \| Respond to of 95453

Westcoast Energy Raymond James analysts Bob Hastings and Juan Plessis continue to rate the shares of Westcoast Energy Inc. (TSE-W, $33.90) a strong buy. Their 12-month target price is unchanged at $43. Westcoast has announced that it has entered into a letter of intent to sell two of its power generation assets to Calpine Canada Power Holdings Ltd. (TSE-CPX, $78.01). The deal is worth $392 million. It comes on the heels of the company's recent termination of negotiations to sell power assets to TransCanada Power LP. The transaction with Calpine "appears to represent about two times book value and compares very favourably to Westcoast's current market value ratio of 1.5 times book value," Messrs. Hastings and Plessis say. What's more, it will let the company "receive $177 million in cash, eliminate $215 million of debt, and record an after-tax gain of approximately $70 million." Westcoast Energy is a leading North American energy company.

To: Frank Pembleton who wrote (90958)	5/17/2001 7:55:11 AM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

fpembleton re: why KGC ? KGC is not "the" pick in a continued depressed Price of Gold operating environment - actually there would be no reason to own any gold stocks if one see's the POG remaining in this area. We are not weighted to the gold stocks because we want to own these companies in "THIS" price of gold & operating environment. We are weighted to gold stocks here, because we see the price of gold increasing substantially from present levels. KGC is cash flow positive down to $240 gold as well - no significant/immediate risk of insolvency. @ $320ish Gold - KGC should be among, if not the highest upside % mover of the "name" No American producers. For each $25 move in the Price of Gold; KGC's NAV increases approx 180% in this sub $300 POG environment. They are the 5th largest No American producer with the highest operating leverage to a rising price of gold of all the non-micro/exploration plays & that's why KGC is so appealing here.