PANIC CALPINE
CALPINE
CF.UN went down for more than 10% today due to an announcement from Calpine Corporation where its top two guys are ousted (CEO and CFO0, a few days after I bought it. How embarrassing! I averaged down a bit here (8.09) as I felt there was some panic (BUY PANIC). The market view is that Calpine is heading for Chapter 11. No doubt as it appears the only way out for Calpine. But how will a filing affect CF.UN, and how much? I believe under the worst scenario, CF.UN will have to find another off-taker for its generation capacity or take some merchant risks in the Alberta and ontario market. I believe the distribution is safe in both near-term and longer term. Therefore, the 10% decline is not warranted. I believe it will bounce back to 9-10 level in the next few weeks. With 12% distribution, I would be rather content to wait.
CF.UN went down for more than 10% today due to an announcement from Calpine Corporation where its top two guys are ousted (CEO and CFO0, a few days after I bought it. How embarrassing! I averaged down a bit here (8.09) as I felt there was some panic (BUY PANIC). The market view is that Calpine is heading for Chapter 11. No doubt as it appears the only way out for Calpine. But how will a filing affect CF.UN, and how much? I believe under the worst scenario, CF.UN will have to find another off-taker for its generation capacity or take some merchant risks in the Alberta and ontario market. I believe the distribution is safe in both near-term and longer term. Therefore, the 10% decline is not warranted. I believe it will bounce back to 9-10 level in the next few weeks. With 12% distribution, I would be rather content to wait.
posted by ZIGZAG at 11/29/2005 10:23:00 PM
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