{"id":598,"date":"2007-09-13T07:16:04","date_gmt":"2007-09-13T14:16:04","guid":{"rendered":"http:\/\/montaraventures.com\/blog\/2007\/09\/13\/calpines-market-cap-shrinks\/"},"modified":"2007-09-13T07:16:04","modified_gmt":"2007-09-13T14:16:04","slug":"calpines-market-cap-shrinks","status":"publish","type":"post","link":"https:\/\/montaraventures.com\/blog\/2007\/09\/13\/calpines-market-cap-shrinks\/","title":{"rendered":"Calpine&#8217;s Market Cap Shrinks"},"content":{"rendered":"<p>Originally published at <a href=\"https:\/\/montaraventures.com\/energy\/\" target=\"_blank\" >Montara Energy Ventures<\/a>.<br \/>\n<br \/>\nBack in June when <a href=\"https:\/\/www.calpine.com\/\" target=\"_blank\" >Calpine&#8217;s<\/a> reorganization plan was announced, the stock traded at $2.93 per share. On that day, <a href=\"https:\/\/montaraventures.com\/energy\/2007\/06\/21\/calpine-files-reorganization-plan\/\" target=\"_blank\" >we predicted that the shares would slide<\/a> (in the face of a post-announcement pop to $3.21\/share) to a level that would more accurately reflect the value for shareholders.<br \/>\n<center><br \/>\n<img decoding=\"async\" src=\"https:\/\/montaraventures.com\/pix\/cpnlq.pk.jpg\" alt=\"Chart of Calpine's stock performance over the past 6 months\" \/><br \/>\n<\/center><br \/>\nYesterday, the issue closed at $1.39\/share. It has traded as high as $1.55\/share today.<br \/>\n<br \/>\nDoes this mean Calpine is a bad company? No, not at all. It does mean that the reorganization plan and the company&#8217;s desire to &#8220;go it alone&#8221; leave investors with limited near-term upside. On the contrary, if Calpine invests in expansion of the geothermal portfolio and slims its fossil fuel portfolio to profitable plants, this is potentially a good long-term investment &#8211; particularly now that the shares are trading at a level closer to intrinsic value.<br \/>\n<br \/>\nWhere do the shares go from here? It depends on the execution of the reorganization plan, natural gas prices, and non-fossil fuel generation investment decisions. If these work out favorably, there should be a nice appreciation. If any of the 3 are out of line, expect the issue to stay flat or even fall a little further. Caveat Emptor.<br \/>\n<br \/>\n<i>The principals of MeV hold no position in Calpine.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Originally published at Montara Energy Ventures. Back in June when Calpine&#8217;s reorganization plan was announced, the stock traded at $2.93 per share. On that day, we predicted that the shares would slide (in the face of a post-announcement pop to $3.21\/share) to a level that would more accurately reflect the value for shareholders. Yesterday, the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,18],"tags":[],"_links":{"self":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/posts\/598"}],"collection":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/comments?post=598"}],"version-history":[{"count":0,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/posts\/598\/revisions"}],"wp:attachment":[{"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/media?parent=598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/categories?post=598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/montaraventures.com\/blog\/wp-json\/wp\/v2\/tags?post=598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}