----- Forwarded by Stanley K Horton/HOU/Dynegy on 01/07/02 03:09 PM -----
                                                                                                                                                    
                      RJ EnergyGroup                                                                                                                
                      <RJEnergygroup@ec        To:       "'RJ Customer'" <rj@rjf.com>                                                               
                      m.rjf.com>               cc:                                                                                                  
                                               Subject:  Energy Stocks are at the Bottom of a Cyclical Downturn with a Secular Upswing: Buy Now!    
                      01/07/02 08:02 AM                                                                                                             
                                                                                                                                                    
                                                                                                                                                    






 <<IENER010702BSOW.PDF>>

Raymond James Energy Stat of the Week, published 01/07/02.

Recent energy investment sentiment could be characterized as a fear-driven,
cautious psychology that has led to a generally under-owned condition for
most energy stocks.  A major contributor to this negative psychology has
been the underlying belief of investors that "energy stocks always bottom
several times before a sustained upward move."  While that was true in the
1998/1999 downturn, we are convinced that today's energy fundamentals are
far different than those experienced in the downturn several years ago.  In
fact, we believe today's environment is much more similar to that
experienced in the 1972/1974 timeframe, when energy stocks experienced a
two-year run-up followed by a recession and subsequent nine month sell off.
In the 1974 downturn, however, the stocks experienced one bottom in the
late fall and never looked back.  Likewise, we are convinced that energy
stocks have already seen their lowest levels and as strong commodity
fundamentals become visible later in the first quarter, the stocks will
begin to run.  In other words, we believe the energy stocks are near the
bottom of a cyclical downturn within what we believe is going to be a
longer-term secular upswing.  That means that now is the time to be buying
energy stocks!

The attached file is in the Adobe Acrobat *.PDF format. If you do not have
the latest version of the Adobe Acrobat Reader, you can download it free
from

http://www.adobe.com/prodindex/acrobat/readstep.html#reader.  If you should
experience problems with this email, please contact Datra Roter,

droter@ecm.rjf.com.

If you have further questions, please contact any of the following members
of the Raymond James Energy Team at 800-945-6275 (Houston).

Research Team
Oilfield Service        E&P                 Utilities/Energy       Calgary
Energy
Marshall Adkins Wayne Andrews   Alexandra Fasoli       Ken Faircloth
John Tasdemir   John Tysseland                               Gordon Gee
Jim Rollyson    Jeff Stultz                                  Roger Serin
Matthew Burrus  Porfirio Hernandez                           Andrew
Bradford
John Freeman    James Mullins                                Kara Bayton

Grant Daunheimer

Angela Guo

Fixed Income
Jon Kyle Cartwright
(Florida Office)
727-573-8366

Investment Banking Team
Oilfield Service        E&P                 Utilities/Energy
Calgary Energy
Steve Grant           Howard House      Allen Lassiter          Naveen
Dargan
Ron Montalbano  Michael Ames    Mark Huhndorff          Jason Holtby
John Sterling   C.W. Macleod    Kevin Palma                     Igor
Falaleyev
Gib Hordes        Scott McNeill                                 Caroline
Troy

            Wes Martin                                David McGorman


Kevin Smith

Office Locations
Houston                                 Dallas
5847 San Felipe, Suite 720            2001 Ross Avenue, Suite 3500
Houston, TX  77057                  Dallas, TX  75201
(800) 945-6275  FAX (713) 789-3581      (800) 393-1314  FAX (214) 720-1315
(713) 789-3551  FAX (713) 266-4117

Calgary                             St. Petersburg
Suite 2500, 707 8(superscript: th) Ave. SW          880 Carillon Parkway,
Tower III
Calgary AB T2P 1H5                  St. Petersburg, FL 33716
888-477-6451                            High Grade Trading 800-248-8863
ext. 8336
403-509-0536                        High Yield Trading 800-448-6623
                                    Fixed Income Research (727) 573-8366

(See attached file: IENER010702BSOW.PDF)