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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Stein, Neil <neil.stein@csfb.com< X-To: undisclosed-recipients <undisclosed-recipients:;< X-cc: X-bcc: X-Folder: \JDASOVIC (Non-Privileged)\Dasovich, Jeff\Inbox X-Origin: Dasovich-J X-FileName: JDASOVIC (Non-Privileged).pst <<IPW111901.pdf<< Good Morning, Attached, please find the latest issue of our Independent Power Weekly. Summary: 1. IPPs Rise 5.0% Last week our IPP composite rose 5.0%, outperforming the S&P 500 (+1.6%) and the NASDAQ (+3.8%). AES Corp (AES), which was up 22.2%, was the strongest generator in the group followed by Reliant Resources (RRI) which rose 11.0%. Orion Power (ORN) was the weakest performer, rising 1.2%. 2. Generation Oriented Utilities Fall 2.8% Our universe of generation-oriented utilities fell 2.8%, in-line with the UTY (-2.5%). Black Hills (BKH), Cleco (CNL) and Constellation Energy (CEG) all rose less than 1%. Allegheny Energy was the weakest performer, down 7.6%. 3. ENE/DYN + Attractive Valuations Boost Stock Prices Last week was the 3rd consecutive week of positive stock price performance for the group. Driving stock prices higher, investors continued to grow more comfortable with the Enron situation following confirmation of Dynegy's intention to acquire Enron and provide immediate liquidity support by investing $1.5 billion. Further, we believe the group simply remains oversold. The pure play power producers are trading at a 7% average discount to their private market asset values. 4. Notes From Mirant Meeting Mirant hosted an upbeat analyst meeting last Tuesday. MIR reiterated that 80% of its 2002 forecast is supported by earnings from hedged (generation and natural gas) and franchise businesses (distribution). MIR also provided an in-depth review of how it accounts for its risk management activities. Management noted that it could maintain its credit rating without any new equity issuance over the next 12 months. However, it would be eager to access the equity market should conditions improve in the near-term. 5. Power Market Update Last week the US power markets were generally weak across the country owing to mild weather and falling natural gas prices. While the Mirant National Power Index fell 17.1% last week, the Natural Gas Week composite spot price fell 23.2%. Spark spreads improved in the Northeast and Texas, while compressing in California and the Southeast. 6. Debt Market Update Credit spreads tightened across the sector last week due to diminished ENE concerns and positive stock price performance. Regards, Neil Stein 212/325-4217 This message is for the named person's use only. It may contain sensitive and private proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any mistransmission. If you are not the intended recipient, please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient. CREDIT SUISSE GROUP and each legal entity in the CREDIT SUISSE FIRST BOSTON or CREDIT SUISSE ASSET MANAGEMENT business units of CREDIT SUISSE FIRST BOSTON reserve the right to monitor all e-mail communications through its networks. Any views expressed in this message are those of the individual sender, except where the message states otherwise and the sender is authorized to state them to be the views of any such entity. Unless otherwise stated, any pricing information give! n ! in this message is indicative on ly, is subject to change and does not constitute an offer to deal at any price quoted. Any reference to the terms of executed transactions should be treated as preliminary only and subject to our formal written confirmation.
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