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   Gold/Mining/EnergyEIX: Edison International


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To: Sampat Saraf who wrote (2)1/20/2001 1:18:52 PM
From: sandiegobear
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As a southern California resident, I have been very interested in the EIX situation. Right now EIX looks like it could be a good turn-around candidate since it is selling substantially below book value and most would consider it unlikely that Cal. would let it die. But, it is in default on its bonds and no one knows if things will get worse. I think I'm going to take a small position but I will consider it very speculative.

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To: sandiegobear who wrote (3)1/20/2001 1:43:25 PM
From: sandiegobear
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Further thoughts: The real problem is political rather than economic and that makes it harder to evaluate. The big fear I have is that the state will allow the utilities to go bankrupt and then pick up the pieces in an emergency eminent domain situation. This would shift the liabilities (which are huge already and growing) from the taxpayers to the stock and bondholders. There have to be politicians thinking about this right now - I think I just talked myself out of buying it.

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To: sandiegobear who wrote (4)1/21/2001 4:16:34 PM
From: BirdDog
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You're extremely wise to hold off. EIX owns too much through it's company "Mission", and other companies it has formed. All this came from profits taken through SoCalEdison. Basically, I think they were trying to legally steal from their ratepayers. Only problem is, they forgot to cover their rear end. Now they are asking for help when they have no intention of relieving themselves of the vast holdings they now have outside of SoCalEdison. I don't think the Government is/can let them get away with this. They have for years operated a safe company where they can go to the PUC for increased rates to make up for their mistakes. The Government will have to hold them accountable for this incompetent mistake. Or the elected Government officials involved will be committing political suicide. The result in bankruptcy court will be EIX selling off most all that which they took from the ratepayers and gave to Mission, and the other companies they formed to tuck away their ill gotten riches. Examples?...How about that small high rise on the 405 FRWY with "Mission" written at the top...yup, owned by EIX. Or that big generating facility in New Zeland...yup...New Zeland. Or all the generating facilities owned outside of Calif. now. Or the 1/2 interest Mission has in most every major co-gen plant on the west coast. Or Westec Security, Valley Burglar and Alarm, and many other small companies they bought up and tucked away from socaledison. And lets not forget the vast amount of Real Estate in Calif. they own that has nothing to do with "future substations". And we can't forget "Edison Field"....

BirdDog

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To: sandiegobear who wrote (3)1/22/2001 8:40:26 PM
From: Win-Lose-Draw
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You're not alone in speculating on this. I took a taste at 9 1/8. Will be interesting to see what happens...

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To: Win-Lose-Draw who wrote (6)1/22/2001 8:54:42 PM
From: sandiegobear
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I wish you luck. I chickened out.. the level of rhetoric here in SoCal is very unsettling. Actually, I think it will recover but if it goes bad, it will be all the way to zero. Things will be clearer next month - I may have to pay more but there will still be plenty of upside if the situation turns around.

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From: mlkr6/26/2009 8:32:59 PM
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Downgraded (utilities) by JEF

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