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: CommanderCricket who wrote (14723)	11/8/2002 2:01:48 PM
From: energyplay	Read Replies (1) \| Respond to of 206317

Re: California Atty. General Anti-trust action vs. EP - My guess it's mostly political - Bill Lockyer carrying water for Gray Davis - need to blame Texas companies for part of the energy crisis, and Enron is gone. The headlines and publicity provide political benefit, then this could be eitehr dropped or settled cheaply. Settling provides a political victory for Lockyer/Davis with relativley low expense on El Paso's part. I'm thinking about adding some more EP calls at $10 for April 2003. I think I'll wait, although it is obvious EP has strong support in the $7.50 -$8.00 range. My guess is this action will shake a lot of holders out of EP - Utility investors don't want scary gyrations. Would not surprise me that more EP gets picked up by smart investors, some with political connections. Note that Warren Buffet is buying part of CNP, Centerpoint. I agree with the analyst at CSFB the spinning out trading is a big plus for EP. Note that these conversations with investment banks must ahve been going on for a few weeks, all through the time where EP declared theier dividend - remeber they were a fews days late on the dividendd announcement. My guess is EP has all thier ducks in a row for thier financing, and this is well know on Wall Street - not thier bonds are holding up well, even trading up. TE TECO Tampa Electric is a different matter - no real support - well maybe at $10.00 - and it does not seem to have its' act togeether. They made an equity offering recently, and it looks like they didn't get enough money. Dumb. Also looks like they ahve a fight with Morgan Stanley over transmission rates. Would not surprise me if Morgan Stanely's "friends" are stalling additional financing to pressure TE. I think TE goes under $10, which will flush out all the small investors. DOn't know what happens after that. On a large scale note, I think - 1) utilites are near a valuation bottom. 2) Financial stress is causing the stock and bond prices of some of them to break, creating the possiblity of extreme bargains AND possibility of BK. 3) Some players, firms, agencies (think FERC), politicians, etc. are wittingly or unwittingly causing trouble at this time of high financial stress. 4) This high stress period is not over yet.

To: CommanderCricket who wrote (14723)	11/8/2002 2:05:00 PM
From: jim_p	Read Replies (1) \| Respond to of 206317

El Paso stated on the conference call that they were not opposed to an out of court settlement. Looks like there is a little smoke on both sides? I suspect a settlement, even a large one, would be very positive for the stock. Sounds like we may be getting close. Jim