Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (6380)	1/31/2002 11:18:15 PM
From: jim_p	Read Replies (2) \| Respond to of 206089

Gottfried, It's a catch 22 for the power generators. The market is now softening in term of both growth and operating margins. Most have huge capital commitments at a time when assess to capital is almost gone. On top of that, potential losses from both CA and ENE have not been recognized from what I can see. These are big numbers which in some cases exceed their capital. Now that the rating agencies downgraded the weak players that were over leveraged, their access to capital is both limited and a lot more expensive almost assuring failure for some. The sector will soon need consolidation and some may not survive. CPN is the one most mentioned here in Houston as one who will most likely not make it, but MIR is not much better off. Look hard at MIR earnings last Q. Gains from derivatives made up more that 100% of the income. I know they looks very cheap, but there is good reason. All I can say is read the footnotes carefully before buying. Good luck, Jim