Lookie here ;) Barron's: Look for electric rebound
By CBS.MarketWatch.com
Last Update: 12:18 PM ET Feb. 23, 2002
NEW YORK (CBS.MW) -- Electricity stocks may get a boost Monday after a published report said several of the industry's companies, including Duke Energy and TXU, could benefit from a forecasted rebound in power prices.
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Electric utility shares have suffered sharply in recent months as the economic recession aggravated a slide in power prices, according to a report in this week's Barron's. The fallout of the Enron debacle (ENRNQ: news, chart, profile) added to the decline.
But industry watchers now predict a gradual comeback for the stocks, the report said, noting that Salomon Smith Barney analyst Raymond Niles believes prices have reached their lows and should begin to rebound.
Warning that even the best electric stocks will have to overcome accounting concerns, Niles said his top stock picks include Duke Energy (DUK: news, chart, profile), Dynegy (DYN: news, chart, profile), Enron's former suitor and El Paso Energy (EP: news, chart, profile).
TXU Corp. (TXU: news, chart, profile) is also worth a look, the Barron's article said. The company's CEO Erle Nye pointed out that TXU has gone from a local firm serving 2.4 million customers in Texas to an international operator with 11 million customers in the U.S., the United Kingdom and Australia. Its credit rating has also improved to reach investment grade status.
TXU will likely be one of the few major utilities reporting higher first-quarter net income this year, the report said. |
