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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (22349)	5/8/2003 4:51:35 PM
From: ItsAllCyclical	Respond to of 206321

>> The problem I have with RRI short term is it's no longer a bargain. $0.50 a share gives it a P/E of 10. I don't trust the higher end of $0.70 anymore. For a struggling utility, without firm guidance, I'll pass for awhile. IMHO, RRI is currently at fair value. << For 2003 maybe, but that's almost 1/2 over. I still expect to come close to estimate of around $1 for 2004 and 2005 should continue to be higher. The markets will start to price in 2004 estimates prior to 2004. Also you had a number of MTM (market to market) transactions that will no longer be there in 2004, finalized Euro sale, potential for TGN purchase and hedges come off on Orion coal plants (this year I believe). As such the long term story is still pretty much intact (hence the strong recovery today imho). I think RRI can be at 15+ by mid 2004 assuming estimates of around $1.50 for 2005 (again market will look forward). Much will depend on how TGN purchase is handled though. If there is significant dilution it'll delay my target, but it'll still come eventually. There aren't too many stocks I can say that about. That's why I like a core holding, but I will trade around that core. I will likely add to my core if the low 4's are seen again on any bad FERC ruling. My IRA trading shares bought today will probably get sold in the next few days if it continues to recover. I see a trading range of 4.5 to 6.5 in the medium term until FERC is resolved. Prior to that I think it could have based in the 5 to 7.5 range, but I agree these new estimates will take a toll short term.

To: CommanderCricket who wrote (22349)	5/8/2003 8:26:37 PM
From: Sweet Ol	Respond to of 206321

<<Why would DVN be down today with such outstanding earnings numbers? I really liked OEI and made money with it back in 99. Sounds like a nice disconnect to play. >> I assume it is the old "Buy the rumor, sell the news' kneejerk reaction of Wall Street. I bought some today on the dip. I also bought more EOG, CRK and my top holding, SJT. Rocky Mountain gas prices seem to be inching up now that the new Platt Pipeline expansion lets them sell more to California. I think Frank is right about the timing of the coming NG crisis. If he is wrong I may have to join his wife at WalMart (or is it KMart, I can't remember). Best to all, JRH