fw : csfb independent power weekly - issue # 38 ; response to barronsarti cle included
- - - - - original message - - - - -
from : stein , neil [ mailto : neil . stein @ csfb . com ]
sent : monday , august 06 , 2001 7 : 14 am
to : undisclosed - recipients
subject : csfb independent power weekly - issue # 38 ; response to
barronsarti cle included
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 . this event is
designed to provide investors with a wholistic perspective on all aspects of
the sector - from coal and natural gas companies , to equipment and
construction service providers , to the power producers themselves . please
contact us if you would like additional information .
1 . ipps rise 0 . 4 % last week our ipp composite rose 0 . 4 % , slightly
underperforming both the nasdaq ( + 1 . 8 % ) and the s 2 . the article ' s thesis does not
consider the potential for retirement of existing capacity , and 3 . the
regional characteristics of the power generation market resist such broad
sweeping generalizations .
3 . credit spreads continue to improve importantly , while our ipp equity
composite has traded off more than 10 % over the last few weeks , ipp credit
spreads continue to tighten . for example , while calpine shares have traded
off 11 % since july 6 , the spreads on cpn ' s 10 year 8 . 5 % notes due 2011 have
actually tightened by more than 50 basis points . last week alone , cpn
spreads tightened by 12 basis points , while the stock traded off 3 % . to
cite another example , while mirant shares have traded off 8 % over the same
period , the spreads on mir ' s 7 . 9 % notes due 2009 have tightened by 55 basis
points .
4 . q 2 earnings review last week second quarter earnings results were
reported by black hills , cleco , dpl , entergy , mirant and orion power .
upside surprises were reported by dpl , etr , mir and orn . versus
expectations , mirant ' s results were the strongest , coming in 21 % above our
estimate . cleco was the only company that posted an earnings
disappointment , reporting q 2 results that were 22 % below our estimate .
5 . power market update last week power prices were up considerably as
evidenced by the 27 % increase in the mirant national power index . with the
exception of the western market , power prices got a boost from hot
temperatures that blanketed most of the country . the texas market
experienced unusual volatility owing to recent wholesale market design
changes and the initiation of a retail competition pilot program .
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 .