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

To: Braincramp who wrote (247)	2/22/2002 10:33:16 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 903

But there are a few concerns. First thing is the price of assets. The bulk of MIR's planned asset sales have already occurred - it's those just now getting started thinking about asset sales that get hurt (if anyone). BV may have to be adjusted downward. You might think about an accounting class. These are tangible assets, not goodwill. You don't write them down just because the market is screwed up. what we think we are buying for 50 cents on the dollar may not be that cheap after all. It's the cash the assets generate that matters, not what some other company is desperate enough to dump similar assets for. Next is higher interest rates, what is Mirants debt financed at? Little, if any, of MIR's debt is floating rate and they don't need to issue new debt, so higher interest rates are not an issue. In fact, one might even argue that higher rates could be good for them.

To: Braincramp who wrote (247)	2/23/2002 12:38:55 AM
From: Softechie	Respond to of 903

My next question is how Mirant to have 10%-15% growth when they're selling assets and slim 1.5% profit margin. With it we won't be able to pay the debts. I see the Calpine news about closing $1B credit line "very soon". It's showing that they're still having a hard time closing the deal. Now congressional is focusing on financial houses that dealt with Enron. More hearings coming up with da big boys. JP Morgan in troubles with Enron and Global Crossing? I think so. Micro condition is good but macro condition is getting worse. Mirant has vowed not to go back to capital market for next 5 years and just live within its means which is tight. Then what P/E should it have for this? 10 is too much and 1 is too little. 3-4?