The entire IPP sector has been destroyed lately because of Enron, CA issues, trading issues. I trade in and out of DYN AES MIR RRI WMB CPN. The only stock that has a short-term chance is CPN:
a. resolved all liquidity issues
b. only IPP without a CA problem
c. doesnt do as much trading as DYN RRI or MIR so will not get into the same SEC trouble (I believe they stopped non-hedge related trading in Dec 2000).
d. P/E of about 5 plus solid revenue growth.
most importantly: great relative strength this past week compared with the other IPPs. It looks like people putting money in the IPPs are gravitating toward CPN.
I have been long CPN for awhile with a cost-basis now in the 7s thanks to Febs dip and in the past few days I entered into new swing positions on AES and MIR. I am most interested in AES and MIR for the dividends on the preferred stock.
For instance, I bought 5K shares of AES preferred C which currently pays a 17.5% dividend and hedged by shorting 10K shares of AES. So far, so good.
a. resolved all liquidity issues
b. only IPP without a CA problem
c. doesnt do as much trading as DYN RRI or MIR so will not get into the same SEC trouble (I believe they stopped non-hedge related trading in Dec 2000).
d. P/E of about 5 plus solid revenue growth.
most importantly: great relative strength this past week compared with the other IPPs. It looks like people putting money in the IPPs are gravitating toward CPN.
I have been long CPN for awhile with a cost-basis now in the 7s thanks to Febs dip and in the past few days I entered into new swing positions on AES and MIR. I am most interested in AES and MIR for the dividends on the preferred stock.
For instance, I bought 5K shares of AES preferred C which currently pays a 17.5% dividend and hedged by shorting 10K shares of AES. So far, so good.
