Placing order to buy SCANA Corp.. (NYSE: SCG). This diversified holding company does everything:
SCANA Corporation is a public utility holding company that conducts its business through its 14 direct, wholly owned subsidiaries. A subsidiary, South Carolina Electric & Gas Company (SCE&G), is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity and in the purchase and sale, primarily at retail, of natural gas in South Carolina. SCE&G also renders urban bus service in the metropolitan area of Columbia, South Carolina. Another subsidiary, Public Service Company of North Carolina, Incorporated is a public utility engaged primarily in transporting, distributing and selling natural gas to approximately 351,000 residential, commercial and industrial customers in 31 counties in North Carolina. Through SCANA Energy Marketing, Inc., the Company markets electricity, natural gas and other light hydrocarbons primarily in the southeast.
The balance sheet is clean enough for a utility: 1.5 debt/equity ratio (total debt: $3.1 billion), and $640M in cash.. so these guys certainly have room to play around with. Cash flow from operating activities last year was $391M, and income per share was $2.12, giving this company a P/E of roughly 13. A tad expensive, but I think the premium is worth it.
Dividend yield of 4.3% also helps. Almost better than Philip Morris now.
Placing order to buy 36 shares SCG at 28 dollars a piece. Order expires April 17th.
NOTE: One more 'non-tech' company will be placed in the portfolio at a future time.. and when I sell COMS, the proceeds from that will go towards a 'tech' company, and then the portfolio will be completed. The goal of this portfolio is to outperform the S&P 500 using stocks listed from the S&P 400. |
