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Gold/Mining/Energy : CPN: Calpine Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Clement who wrote (242)	1/9/2002 9:48:38 PM
From: porphyrin	Read Replies (1) \| Respond to of 555

Clement 1. Some interesting tidbits about Calpines search for cash thestreet.com "In fact, Calpine may be degrading the profitability of its California deals to grab cash. There is chatter in the market that the company has pressed California for upfront cash payments in return for better pricing. And investors need to remember that 35% of Calpine's output in 2002 is going to be unhedged and thus vulnerable to the currently thin spark spreads". 2. I view a breakup number for CPN as very fluid given its precarious position in future contracts with states like CA which have to be a big part of any valuation. How or where did you get the number and how confident are you of it? Thanks for all your work Really interested but my finger is still on the trigger

To: Clement who wrote (242)	1/16/2002 3:01:31 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 555

Clement: What's your thoughts on latest adjustment and CC. I still agree with your statement: <<Calpine is worth something in the range of $30 in breakup value alone (forget about future growth).>> Lowered industry capex across the board will make existing and in process plant more valuable...less competing supply, and speed up cash flows. I also like the discipline of not building unless hurdle rates are met...too many companies fail to recognize that growth that returns less than cost of capital destroys value.