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

To: Second_Titan who wrote (11147)	12/17/2001 4:20:06 PM
From: Clement	Respond to of 23153

S_T - I don't want to give the impression that there are not any risks with Calpine... I think there are very significant risks with respect to potential dilution, short term earnings, etc. What I just do not believe is that the risk of bankruptcy is real. With respect to down cycle, I'm not sure you would be correct. Again, the central issue with Calpine is that their core strategy demands that they hedge their cash flows. They have been more conservative than their peers who have bet from time to time as to what energy or electricity prices will do. Calpine does not play the game of speculation and timing. First and foremost it regards itself as a producer. In this I would argue they are a lot less risky than some of their peers. Fortunately I do not have too much money in this either. I try not to exceed 20% of my portfolio in any one stock (as it turns out, Calpine is significantly below this at the moment <g>). Although if we see prices drop again, I may top my holdings off. Clement