Monday September 18 2006


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Meet Michael Cosgrove, America's largest energy broker

Where is energy market heading?

Why sell Amerex right now?

Amerex Energy since starting in 1978 had grown into North America's largest over-the-counter broker of natural gas in dollar terms (RT, 9/8).
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Click here to visit Restructuring Today's website.         It became as well one of the top three among power and environmental emissions and renewable energy credit brokers.
        Amerex is on track to reach $60 million in revenues this year versus $46 million a year ago.
        Why then, sell the firm to GFI Group for $86 million?
        Amerex's structure wasn't the best design to further grow the company, Amerex CEO Michael Cosgrove told us.
        He's to become president of GFI's Amerex division when the deal closes in October.
        Amerex needs to be part of a larger organization to grow the business, Cosgrove explained, referring to access to capital.
        GFI gives Amerex strong capital and financial resources to grow, he added.
        Cosgrove sees tremendous change on the horizon for global energy markets.
        GFI is to provide expertise and resources needed to dominate the next evolution of markets, he told us.
        Why GFI?
        Cosgrove sees GFI as a "no-nonsense" firm that's run similarly to Amerex with a straightforward, honest approach.
        He favors their "fundamental philosophy" of linking technology with human beings.
        GFI, Cosgrove noted, runs parallel voice and electronic markets in a number of areas -- including European power and natural gas.
        GFI as well is good at developing new products -- an "extremely important" factor in the deal, Cosgrove noted.
        He expects to roll out a few new products by the end of the year but declined saying what they are.
        Cosgrove doubts, though, Amerex will depart from the brokerage model.
        The broker-dealer model, he noted, works well in financial markets but he doesn't think it can work honestly in energy markets.
        Broker-dealers take positions themselves in addition to lining up deals for clients.
        Energy customers don't want their brokers taking positions, Cosgrove argued.
        Customers want to know that they're always getting the best number that their broker can get for them, he explained.
        They don't want to worry that the broker is going to keep the best deals for himself and sell less attractive deals for a commission.
        Originally published in Restructuring Today on September 11, 2006

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The outlook for demand response in a high-price environment
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What's ahead from EPACT -- one year later?
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CEA Technologies Inc (CEATI) -- Issues in Power Quality
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www.ceatech.ca/Meetings/PQ/Issues-Power-Quality.pdf

UPLC -- Broadband Power Line 2006
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NET-ATHOME™ -- The world’s most international connected home event
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IQPC's International Powerline Communications 2006
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