Re: Trader Alert --- CPN
- From: Pops <nobody@xxxxxxxx>
- Date: Tue, 29 Nov 2005 23:33:38 GMT
Pops wrote:
This doesn't look good in the short term. What do you think?
Calpine Booted From S&P 500
By TSC Staff 11/29/2005 6:15 PM EST
Calpine (CPN:NYSE - commentary - research - Cramer's Take) learned that it's getting taken out of the S&P 500 just hours after Peter Cartwright, the company's founder and chief executive, and Robert D. Kelly, its chief financial officer, were taken off the payroll.
After the close of trading Tuesday Calpine had a market capitalization of about $307 million, putting it 500th in the index.
<%@ include file="/includes/requestparams.jsp" %>
Genworth Financial (GNW:NYSE - commentary - research - Cramer's Take), the insurance company split off from GE (GE:NYSE - commentary - research - Cramer's Take) in 2004, will replace Calpine after trading wraps up Thursday.
Calpine ended regular trading at a 52-week low of 54 cents, down 71 cents, or 57% on volume that was 13 times heavier than normal. The company's removal from the index likely means its battered stock will face even more selling pressure as money managers whose holdings mimic the S&P 500 move to unload the shares.
The opposite may well be true for Genworth. Often shares rise when a company is added to the S&P because portfolio managers have to acquire the stock.
Calpine has been a consistent money-loser in recent years, and the power company has been pummeled by rising energy costs and borrowing fees. In particular, the increase in natural gas prices has hurt Calpine because that's what runs most of its plants.
Vincent wrote:
Opened a position in Calpine Corp
Calpine Corporation supplies electricity from natural gas-fired and
geothermal power plants to wholesale and industrial customers in North
America. It owns, leases, and operates integrated systems of plants in 21
U.S. statesa and 3 Canadian provinces. Calpine’s customized products and
services include wholesale and retail electricity; natural gas; gas turbine
components and services; energy management; and power plant engineering,
construction, and operations services. The company was founded in 1984 and
is headquartered in San Jose, California. Calpine sold all of its domestic
oil and gas exploration and production assets in July 2005.
.
- References:
- Trader Alert --- CPN
- From: Vincent
- Re: Trader Alert --- CPN
- From: Pops
- Trader Alert --- CPN
- Prev by Date: Re: Trader Alert --- CPN
- Next by Date: Re: Why the US is trying to democratize the rest of the world
- Previous by thread: Re: Trader Alert --- CPN
- Next by thread: Misc.Taxes.Moderated does not crosspost
- Index(es):
Relevant Pages
|
