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

To: chowder who wrote (22838)	5/21/2003 12:20:31 PM
From: jim_p	Respond to of 206093

Kinda scary when the analyst start to say what we've been saying for months? GS upgraded a few, downgraded a few. From the CPN board, here is a portion on RRI: MOST IPP/MERCHANT STOCKS LOOK FULLY PRICED - WE STILL LIKE RRI'S VALUATION AND LONG-TERM RECOVERY PLAN Year to date, the best performing stocks in our coverage universe have been distressed names. The rebound in shares, in our view, has been the direct result of lender support, better than expected commodity price conditions, and a positive reversal in investor sentiment. However, when accounting for current debt levels, we believe most distressed names look fully valued. At this point investors are buying options on spark spread recovery and long- term financial recovery. In comparing each of the higher-risk names we prefer RRI, AYE, and PCG for equity investors. Many of the other distressed names seem to offer an unattractive risk/reward at current levels. RRI is the most undervalued IPP, in our opinion, and farthest along in its financial recovery. RRI also owns an attractive option to purchase Texas Genco (TGN/NC) and should become materially cash flow positive over the next two years. Key risks include commodity exposure, an uncertain exit from the trading business, and lower asset quality.