Posted on 08/06/2003 5:47:51 AM PDT by MeneMeneTekelUpharsin
Amazing. When things are going bad for companies, the media is all over it. Small investors are frightened and quite often sell their shares at a loss. At the same time, when things are turning around for a company...the pundits are unusually quiet and the big boys quickly accumulate shares at the lower prices.
Dynegy was having a lot of trouble with debt post-Enron like many other utilities. With the difficulties came articles from The Street.com and others to effect that Dynegy was having a losing streak on earnings. Things are beginning to pick up as Dynegy is slowly, but surely, restructuring and securing necessary financing and refocusing on core operations. No wonder then that a major institutional holder, Vanguard, Inc., has recently bought an additional 76,557,912 shares accordign to MSN Money at the following link:
Click here for MSN Money link showing institutional ownership of DYN.
Now, why would Vanguard buy THAT MANY shares of a company if no prospect of viability existed? Several other institutional holders have increased their share holdings of DYN by 100%. Why would several institutional holders buy that many shares of Dynegy? According to some media outlets like The Street.com and Forbes, Dynegy is not a company to hold. Maybe not, but that doesnt explain why Vanguard bought 76 million+ shares and other bought millions. Makes a fellow wonder, doesnt it?
If that bothers you, put your money into a fund managed by those institutional investors.
Click here for Market Watch story.
Share price has dropped dramatically today probably based on that news. It's been up and down in pretty wide swings today.
I appreciate your comments. Which ones have you dealt with?
I believe Calpine is a good company. My only problem with them is they operate out of the State of California and are subject to the whims of California government (i.e. worker's comp., etc.) which might lead to their ruin. California government seems to mess up everything they touch, including California in general.
If you got it when it was sub-$1.00, you are one lucky dog. It seems to have a chance (and with the change of CEO to Bruce Williamson even more so) of surviving. Found out later that the MSN statistics quoted above are incorrect regarding Vanguard. They didn't buy that many shares. However, several major funds have recently invested in Dynegy having bought shares they never owned before. So, that says something.
You dog. Some people have all of the luck. They got some pretty good news today:
Click here for S&P upgrade of Dynegy.
That is a lot better news than what came out on Mirant when it was supposed to get some of its debt settled. It will be interesting to see what happens Monday, I guess.
Message # 363886
To Whomever On This Board
Is sending me this...
I do not know what this is but my system says it is a virus,
w32.klez.h@mm
these are the two senders of this to my computer
kreynolds@landam.com
eriley@trinityumc.net bobg
This would seem to indicate to me that the "Bob Grush" character is giving valid information and someone wants him to shut up. An entire book could be written about the information wars on the finance message boards. The Feds are so slow about such attempts, probably NOTHING will be done.
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