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Strategies & Market Trends : IPPs and Merchant Energy Co.s -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (241)	9/27/2002 9:40:21 AM
From: Joe Stocks	Respond to of 3358

Larry, I have owned MIR_pa for about a year. Bought it for about 27.50 as I recall and have added some since with an an average price close to 22. Obviously I'm underwater. This one moves up and down very fast with the movement of MIR. I liked it because it is guaranteed by SO and offered great income. I think it is a very good buy at this level which is much lower Joe

To: Larry S. who wrote (241)	9/27/2002 10:12:53 AM
From: KyrosL	Read Replies (1) \| Respond to of 3358

At 15.5 it yields 20%. The Mirant bonds due 2031 (same maturity date as the preferred) right now yield 16.6%. They, of course are ahead of the preferred in case of bankruptcy and are probably worth their current ask of 55 cents on the dollar (bondsonline) in case of liquidation. So my opinion is that if you want income, the MIR long term bonds are a better bet. If you want risk, I think the common at 2 and change is a better bet. Kyros PS. I used to own the preferred but have recently switched to the common. I consider it a risky but potentially high reward position.