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Politics : High Tolerance Plasticity

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To: jim_p who wrote (11040)12/12/2001 1:42:51 PM
From: kodiak_bull  Read Replies (2) of 23153
 
Jim,

I guess anytime you buy a stock for a dividend play you are concerned about the health of the dividend and the stability of the stock price. When I look at charts on these utility stocks, they look pretty sad. Is it all harmless fallout from ENE DYN CPN EPG, or is it something more? Is it possible that the level of scrutiny these guys are going to have to go through will reveal similar fun 'n games in the utility industry as a whole?

How about the basic health of their business? With energy prices falling, assuming these guys are still by and large regulated as to rates where they operate, you have to assume some of their rates are going to fall. Add to that decreased industrial and consumer demand, and earnings are likely to fall. How low? Will that impact the dividends?

I guess my first cut at trying to understand an area I haven't dealt with before seems to throw off a lot of smoke and dust. Is there better visibility for these stocks than first appears?

Kb
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