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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Winkman777 who wrote (11109)	12/14/2001 2:26:34 PM
From: jim_p	Read Replies (2) \| Respond to of 23153

Winkman, I agree they are not an Enron, but they have the highest leverage in the sector with debt/equity of 3.58X. They also have done a number of deals with friends of mine which were very bad deals for CPN and great deals for the sellers. They have a name in the patch as being a mullet. Rating agencies don't place companies on negative alert without downgrading very often. The rating agencies will error on the side of pulling the plug on CPN after having egg on their face from ENE. No one wants to be in the sector, and we're in tax selling season. They have a negative working capital of about a billion, total liabilities of 14.7 billion and equity of only 2.9 billion. Down grade to junk will turn these guys to toast over night. They have opened a number of data rooms to sell the oil and gas properties which they acquired at the top of the market at fire sale prices to raise cash. I think the risk reward is in favor of the shorts. If the rating agencies don't get them, the locust will. I think CPN would win on the sharpest knife in the drawer contest Good luck with the longs, I shorted today at 14. Jim