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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: torquatus who wrote (16841)	8/9/2002 9:49:07 AM
From: benchpress550	Read Replies (1) \| Respond to of 18998

When Mr. Pink says to short something, he is right about 90% of the time...right after it squeezes for a 50%gain.

To: torquatus who wrote (16841)	8/9/2002 11:37:21 AM
From: MAELING	Read Replies (3) \| Respond to of 18998

torquatus - Can you back up your 90% figure? All I can do is go to Pink's most recent EDGAR filing - 13F HR which shows that he was long Stilwell Financial. I would have thought that he'd be short jANUS, not long. In any case, you want to read ALL the sentences in a 10Q. It might make sense that they are 'selling' assets to EPN - a master limited partnership for which they are general partner and own 28%. In the energy business, no longterm contracts are being signed, so there is no liquidity, period. No one except Buffett has liquidity. Which is why they are approaching him for sales a la Williams X2, and Dynegy. To increase free cash flow EP is cutting back capital spending on E+P. That's because gas prices are down, and their return on capital will be greater by paying down debt. When prices improve, they can ramp E+P back up because the gas and oil aint going anywhere. If prices don't improve, they said that they will buy back stock below book value. That improves their equity per share and pays them (avoids) a 6-8% dividend. $2 billion might seem like a big number when the market cap is $8.6 billion, but they report $48 billion in assets ($62 billion if you add back depreciation). Sales are $42 billion. The recent Coastal merger was valued at $16 billion. Coastal has a bunch of assets that need to be sold because they don't fit El Paso. Maybe some of it makes sense now. What doesn't make sense is for Pink to make a short alert without data, and then disappear. This suggests a FUD campaign that screws over small shareholders at the expense of hedge funds. This activity is criminal. It costs this country more than terrorist attacks because it strikes at the very engine of our prosperity - trust in the financial system.