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-----Original Message----- From: Stein, Neil [mailto:neil.stein@csfb.com] Sent: Monday, August 27, 2001 7:32 AM To: undisclosed-recipients Subject: CSFB Independent Power Weekly--Issue #41 <<IPW082701.pdf<< Good Morning, Attached, please find the latest issue of our Independent Power Weekly. Also note that on September 10 and 11, CSFB will host a Power Generation Supply Chain Conference at the Plaza Hotel in New York City. The power generators will speak on the morning of 9/11. Companies presenting include: CPN, MIR, NRG, ORN, RRI and TE. 1. IPPs Rise 3.9% Last week our IPP composite rose 3.9%, outperforming both the NASDAQ (+2.7%) and the S&P 500 (+2.0%). This was the strongest performance for our composite since the second week of July. Calpine, which was up 10.9%, was the strongest performer in the group. Global Power Equipment Group was the weakest performer, falling 3.4%. 2. Recognition of Attractive Valuations and CPN Conference Call Boost Stock Prices We attribute last week's performance to a growing recognition that the group is simply oversold. Indeed, on average the pure play IPPs are trading at 11.6x 2002 EPS, which represents a 40%+ valuation compression year to date. More immediately, we believe a conference call hosted by Calpine on Monday (8/20) helped ease investor concerns regarding the supply/demand outlook for the sector and the ability of power generators to attract capital to grow their businesses. 3. Calpine Hosting Final Special Topic Conference Call On Tuesday (8/28), Calpine will conclude its special topic conference call series with a discussion of the California power market. The call will take place at 2 pm EDT. The dial-in number is 877/692-2137. On the call, management will provide a regulatory update and describe the steps it has taken to respond to the power shortages in the state. 4. California Windfall Profits Tax Bill Resurfaces Today (8/27), the California Assembly Revenue and Taxation Committee will consider SB 1 XX-the power generator Windfall Profits Tax bill. Importantly, while earlier versions of the bill implied that the tax would be retroactive and applied to power sales going back to January 1, 2001, the current version of the bill suggests that the tax will not be implemented until early 2002. In addition, an internal analysis of the bill done by the Assembly Revenue and Taxation Committee suggests that the bill could be subject to several legal challenges if it is passed. Regards, Neil Stein 212/325-4217 This message is for the named person's use only. It may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any mistransmission. If you receive this message in error, 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 of its subsidiaries each 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 authorised to state them to be the views of any such entity. Unless otherwise stated, any pricing information given in this message is indicative only, 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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