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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: - with a K who wrote (13432)	12/13/2001 4:20:30 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78594

<<but that $9.3 bil in debt!!!>>Wouldn't want to see that on my Visa statement, but they got assets on the other side. According to Merrill the reproduction value of the assets less the debt still leaves over $40 net asset value per share. And those power plants are the latest stuff, not outdated hulks, with lower cost of production than most existing plant. Over 2/3's of the next 10 years production is sold...with locked in gas costs [spark spread] generating 1.7Billion in annual ebitda. I wouldn't count on the PEG, though, cause unless the financing situation changes, they're gonna slow down on future construction. Not that growth won't come back once it's clear that hot summers, cold winters, and increasing power demand from a cyclical recovery are just as much a part of the future as the past.