Daily Stock Opinions and Ratings

Opinions

Dan BastasicCalpine Power Income FundCF.UN.TOTOP PICKAug 05, 2005

(A Top Pick May 27/05. Up 5%.) Very good value.

Dan Bastasic

Owned

Unlock Rating

$10.80

Stock price when the opinion was issued

investment companiesfunds

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

HOLD

Mother company in the US is going through bankrupt proceedings, so there is a lot of speculation regarding their Calgary facility. Just signed a new 20-year contract with Calgary. Expect distribution will be sustainable. Have a lot of cash. Can see some upside.

SELL

Have been through a lot over the last 6/8 months with their parent company seeking bankruptcy protection. There will continue to be a lot of uncertainties. Fairly high risk.

DON'T BUY

A little less optimistic because of the convoluted contractual rate arrangement between this company and the Calpine Corporation which has gone into bankruptcy.

DON'T BUY

Has lightened up his position in this stock over time. The parent company in the US went into Chapter 11. There are various inter company arrangements relating to debt, fees, etc. which caused them some problems.

DON'T BUY

Have used this as a trading stock in the past. There is uncertainty on hydro costs in Alberta. They are very good assets but because of uncertainty, he doesn't own now.

BUY

Very complicated story with a lot of moving parts. Their parent is going through bankruptcy procedures and they still own some of this company. A lot of uncertainty. Good buying opportunity. Over the next couple of months, the story should get a lot cleaner.

DON'T BUY

Parent in the US took creditor protection last year and the price dropped to $7.50 which was a very good price. North of $10, he was selling his units.

BUY

Calpine Corp. in California is going into bankruptcy protection and this trust contracts with them which created a lot of concerns. There is definitely a risk of distribution cut of 25% but the drop in price has fully reflected this and was very pessimistic. Very solidly run business. Below $9 it is a good buy and in the drops below $8 it will be a good take a candidate.

BUY ON WEAKNESS

There is some value in this fund and he would be a buyer around $7.50.

DON'T BUY

The issue on this one is not the underlying assets, but is the contracts between it and its California parent which is in financial difficulty. If the parent company were out of the equation, it would have distributable cash flow of roughly $0.69. Would be a buyer in the mid $7’s.

DON'T BUY

They have a power purchase agreement with Calpine Corp, in the US and Calpine Corp. is very close to bankruptcy. This has been reflected in the price of the trust. Thinks they will be able to change the purchaser to a new body. There will be volatility here.

SELL

In between a supply contract, you have the parent Calpine Corp. (CPN-N) standing in the middle which is somewhat unique. The parent is a bankruptcy case.

DON'T BUY

Operates 3 very fine power generation facilities. The big problem is that the guarantees behind the power contracts are held by Calpine Corp. in the US which is virtually bankrupt. Calpine Trust has very little ability to call on their parent for back up revenues.

TOP PICK

The big issue is their relationship with Calpine Corp (CPN-N) on which there are lots of rumours on bankruptcy. The only real connection is through Calpine Corp.'s Calgary Energy Centre which has long term contracts with them. This is a speculative Top Pick with a little bit more risk.

Most Recent Experts

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Joe Terranova

Virtus Investment Partners

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Bryn Talkington

Requisite Capital Management

Shannon Saccocia, CIO, Boston Private

Boston Private

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Dan BastasicCalpine Power Income FundCF.UN.TOTOP PICKAug 05, 2005

You might be interested:

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Calpine Power Income Fund(CF.UN.TO)

Latest Buy Signals

Today's Top Picks

Popular Articles

Latest Sell Signals

Most Recent Experts

The Weekly Buzzing Stocks by Billy Kawasaki

Joe Terranova

Stephen Weiss, Founder, Short Hills Capital Partners

Bryn Talkington

Shannon Saccocia, CIO, Boston Private