RRI

[basonista]

Numbers out today...

Reliant Energy Provides 2006 - 2008 Outlook Using Forward Commodity Prices, Preliminary 2005 Results

[David Randolph]

Numbers out today...

Reliant Energy Provides 2006 - 2008 Outlook Using Forward Commodity Prices, Preliminary 2005 Results

Thanks for posting the link basonista 

RRI had a loss of $668M in 2005, or $2.19 per share ! Analysts were expecting a loss for the entire 2005 of just $0.23 per share, or about $70M. So this was quite a miss 

The company also says it used $1.08B in cash on the entire 2005 but it had just $106M in the beginning of the period (this was possible because they sold an electricity plant)

I don't care all that much about the following year's estimates, for me this company is in deep financial trouble.

Anyway, I'll continue with my plan of holding the stock short, unless it is set to close above $10.75.

[David Randolph]

If RRI didn't go down significantly with those awful numbers yesterday, probably I should buy to cover.

After what I've seen in the general market yesterday (the market rose a lot despite of signs of a global economic slowdown - either it won't happen or it is already discounted in stock prices), I really don't feel like having short positions and RRI doesn't look like it will go down anytime soon.

So I'm changing my plan and I'll cover the RRI short position around today's open.

[422fwhp]

I'm sticking with the plan:  I will continue to hold unless it is set to close above $10.75

I don't have a lot tied up in this as it was my first short. 

Still looks doomed.

Jody

[422fwhp]

RRI was downgraded today:

http://finance.yahoo.com/q/ud?s=RRI

Still holding short.