Should I make a successful trade using the GLAD rules,if I purchase the minimum of 1000 shares, that gives me a trade of $100.00 - commissnions for a profit of about $80.00 . It's stated that a .10/trade is the goal (1000 x .10=100.00). Where am I wrong
I see that April, June, and September call options for let's say 32 are listed at nearly the same price. Isn't it an advantage to purchase the September since you would have more time?
What is the consensus on how to best approach the next SPO. Buy more stock, sell, or using options in some fashion? It seems that most feel there will be one in the near future and it would be great to be prepared for the annoncement.
I wouldn't be too sure about the Ill. revenue next year. Depending on the weather more than Ill. bidding will determine its revenue
Well, we just started the 4th quarter and the first week here in the midwest the temps have been summerlike. I imagine the electric rates are much much higher tha normal and this will bode well for the 4th quarter earnings.
Future rates in Illinois are going to be higher than what the last years bid prices brought. In the housing market, times are positioned as either a buyers market or a sellers market. I feel that the next round of pricing in Ill. is going more and more towards a sellers market. this is going to put pressure on next years pricing with all of this hot weather.
As far as each plant's profit, I. guess you can only speculate, but I think these plants make a lot of money for the company. I'm sure DYN wants to keep thes babies going or else they would't invest millions on each plant for emissions upgrades.
Don't you think DYN's engineering dept. considered all of these issues? These new emission contols at the coal power plants are intended to put the plants into compliance both state and federal for years to come. These baghouses will not only collect ash but is also designed to control mercury emissions I do believe.
SO, you're willing to sell the two smaller coal plants for approx. 300 million. The reality is that these two plants profit over twice as much as Lyondell and that was sold for over 400 million. Doesn't sound like a good deal to me.
What is your definition of upgrading of coal plants. As BW stated, the coal plants have reduced emissions by 90%. Currently DYN is investing millions of dollars building bag houses at the coal plants that you said were not getting upgraded, reducing emissions even more. And like you said, these coal plants make a good buck, especially since they are geographically near Chicago!
Thanks for the infomation. In a nutshell, all the concern about the end of the auction process and a loss of revenue to DYN is of little consequence. Market prices will prevail and those prices will continue to be under pressure. IMO, I do not think DYN will lose any revenue in Illinois.
On a side note,there are power plants in DYN 's fleet that serve Cnicago, due to their location, IMO
If you recall, BW said that the aution was structured so that the bids would be expensive. Does anyone know what he meant by that statement? Does that mean that the aution of '08 will be less costly to the bidders, therefore the prices will be less but at the same time the cost to supply the bids will also be less. Thus the net result will be the same for each successful bidder as they were in the last auction.
IMO, one reason there has not been any news of a sale of a plant or two is there could be some negotiating of an acquisition in the future. When this is a done deal, DYN will have a better idea which plants are no longer geogrphically feasiable. These things take time
Thanks for clearing that up. Here's to an excellent report on Thursday.
Sorry my reply was so late. I was in Chicago for an event and just got home.
Did anyone see the results for the 2Q for RRI? Basically, the 2Q results were lower do to "worse than expected" weather conditions, but raised their guidance for 2008 and 2009. Is this what DYN will report on Thursday or will DYN exceed their 2Q estimates? RRI currently is down similar to DYN today
One thing that we all might consider is the fact that there has been so much selling in the recent weeks, it indicates that there are a lot of buyers on the sidelines. If DYN blows away the 2Q earnings, there are a lot of buyers ready to jump on the train. No shortage of buyers on Thursday and this could drive the PPS even higher than normal.
I've read a number of post that are concerned about the posssible failure for DYN to capture an equal amount of revenue in the future for its Illinois contracts. If you all recall, BW stated that the format at this years auction made the contracts expensive, thereby requiring the bidders to bid contract very high. Not knowing the procedure or the various in and out of the process, it just seems to me that the next format will be different and that the contracts will be less restictive and therefor less expensive. However, this will allow DYN to be able to utilize more of its electricity to the open market, resulting in greater profits.
Looking to year end, I'll stay put with my prediction at the beginning of the year of a PPS of $12.50. However the third quarter is shaping up to be an excellent one, which may increase that figure somewhat. Also, an aquisition, one that fits DYN's goals, could send it even further.