Message-ID: <1430008.1075860718128.JavaMail.evans@thyme> Date: Mon, 17 Sep 2001 08:55:30 -0700 (PDT) From: jaime.gualy@enron.com To: benjamin.rogers@enron.com Subject: FW: More Sector Thoughts After the WTC/Pentagon Disasters/Kit Konolige/MS Electric Utilities Research Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Gualy, Jaime X-To: Rogers, Benjamin X-cc: X-bcc: X-Folder: \Benjamin_Rogers_Mar2002\Rogers, Benjamin\Trading Info X-Origin: Rogers-B X-FileName: brogers (Non-Privileged).pst -----Original Message----- From: Courtney Cleman @ENRON [mailto:IMCEANOTES-Courtney+20Cleman+20+3CCourtney+2ECleman+40morganstanley+2Ecom+3E+40ENRON@ENRON.com] Sent: Monday, September 17, 2001 8:32 AM To: kkonolig@ms.com Subject: More Sector Thoughts After the WTC/Pentagon Disasters/Kit Konolige/MS Electric Utilities Research Morgan Stanley Electric Utilities Research Kit Konolige (212) 761-6237 David Reynolds (212) 761-6078 Carrie Stevens (212) 761-6183 Chris Bezler (212) 761-4487 Douglas Levine (212) 761-7134 More Sector Thoughts After the WTC/Pentagon Disasters * Defensive posture means stocks should outperform With European markets sinking and political talk turning towards a protracted military response we expect electric stocks in general to see sector inflows. * Precedence The sector has outperformed in the wake of other crises and industry wide fundamentals appear stable. * Large-cap integrateds may be the best place Regulated utilities more well known as a defensive sector while volatility benefits merchants - big integrateds with merchant exposure like DUK, AEP, and D offer both. * Direct impacts limited Little capital invested in a potentially volatile Middle East; industry is primarily domestic; lower NYC demand transitory and likely immaterial, in our view. - 111037.pdf - Courtney.Cleman.vcf