RE: PIRA Draft Report

I lost $2 million in new deal P&L putting the spread on because they have their curves so srewed up. With respect to your question, I think the answer is yes because I can sell 02 on-line by controlling the stack (limit orders) and the coal group will sell 03-04 at $35/ton. I now own this at $32 because they mis-mark their curve in 04 by $4.00/ton (ie negative $2 million in new deal P&L.)

The bottom line is it was painful putting that spread on.

-----Original Message-----
From: Herndon, Rogers
Sent: Friday, August 24, 2001 9:26 AM
To: Presto, Kevin M.
Subject: RE: PIRA Draft Report

can you get any more of that spread?

-----Original Message-----
From: Presto, Kevin M.
Sent: Friday, August 24, 2001 9:24 AM
To: Herndon, Rogers
Subject: RE: PIRA Draft Report

Good info. Consistent with reports from McGowan. I am now short 02 at $39/ton and long 03-04 at $32.50/ton. Love the spread given my view of natty.

Since the report is almost identical to info I have received from McGowan, I don't see any pressing need to call Alan. You are certainly free to call him if you want.

-----Original Message-----
From: Herndon, Rogers
Sent: Friday, August 24, 2001 9:03 AM
To: Presto, Kevin M.
Subject: PIRA Draft Report

Kevin -

I just received this. You may want to read it and we can give Alan a call if you like.

Rogers
-----Original Message-----
From: "Allan Stewart" <astewart@pira.com<@ENRON [mailto:IMCEANOTES-+22Allan+20Stewart+22+20+3Castewart+40pira+2Ecom+3E+40ENRON@ENRON.com]
Sent: Friday, August 24, 2001 8:21 AM
To: Pradhan, Salil
Cc: Herndon, Rogers
Subject: RE: Request for Information/Status Report

I have attached a copy of a draft section to our upcoming eastern grid for
your comment. I would be interested in your views of our views.

Regards,
Allan Stewart

- COALEast.doc << File: COALEast.doc <<