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Gold/Mining/Energy : Mirant Corporation (MIR) -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (245)	2/22/2002 5:40:45 PM
From: KyrosL	Read Replies (1) \| Respond to of 903

Electricity prices have perked up in the last month and are now above the cash flow breakeven 3 cents per KWH for on-peak average: apx.com The claim that these prices will persist until 2010 is bogus. Some long term contracts may have been signed at these levels, but given the rampant cancellation of power plants and the credit climate for IPPs it won't be long before we are back in energy crisis mode, IMO. Kyros

To: Softechie who wrote (245)	2/22/2002 8:04:06 PM
From: Braincramp	Read Replies (2) \| Respond to of 903

What everyone that is long has to ask themselves is. Will Mirant survive. I say yes based on the info presented. But there are a few concerns. First thing is the price of assets. With all the potential sales that this fall out could bring, BV may have to be adjusted downward. This means that what we think we are buying for 50 cents on the dollar may not be that cheap after all. Next is higher interest rates, what is Mirants debt financed at? The list goes on and on. But what is negative at this point could be a positive in the future. Less plants being completed now may mean shortages later, good for a co like Mirant. By being the first out of the gate and raising cash and selling assets Mirant has shown us that they have some idea of what it takes to survive. So I guess what I am trying to say is that what may seem like a hopeless situation now may be a blessing later. Good luck everyone