Subject: fw : csfb independent power weekly ; notes from eei included
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from : stein , neil [ mailto : neil . stein @ csfb . com ]
sent : monday , november 05 , 2001 7 : 24 am
to : undisclosed - recipients
subject : csfb independent power weekly ; notes from eei included
>
good morning ,
attached , please find the latest issue of our independent power weekly .
summary :
1 . ipps fall 3 . 7 % last week our ipp composite declined 3 . 7 % ,
underperforming both the s 2 . development activity slowing / value driven
m and , 3 . enron exposure .
4 . prevailing mood at eei : uncertainty versus last year ' s conference , the
prevailing mood at eei was one of uncertainty . given developments in the
equity market , commodity market and regulatory arenas , some investor concern
is not surprising . however , we remain positive on the prospects of the
owners and developers of power generation assets for 2 reasons : 1 . long - term
industry fundamentals remain intact ; and , 2 . current concerns are
discounted / ipps trading at 20 % below private market value .
5 . selectivity is important ; focus on the major ipps : highlighting cpn , mir
and nrg we continue to highlight calpine ( cpn , strong buy ) , mirant ( mir ,
buy ) and nrg energy ( nrg , buy ) . owing to their combination of geographic
diversification , large scale operations and substantial hedging , our
analysis indicates that these companies are best positioned to deliver
sustainable earnings and growth in the face of volatile power market
conditions . we believe the current environment should serve as a catalyst
to differentiate these companies from their peers .
6 . debt market update last week enron remained the focus of debt investor
attention , fueling a high level of trading activity for the ipps . credit
spreads continue to be negatively influenced by concerns regarding exposure
to enron .
regards ,
neil stein 212 / 325 - 4217
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