Mir- Article on Market Watch on utilities. This is what they said about MIR.
Mirant
One of the most bruised stocks in the utilities sector is Mirant Corp. (MIR: news, chart, profile), which is down 75 percent from its 52-week high.
The stock is so attractive at current levels that Calvert made it the largest single holding in the AmSouth Value Fund, he said. "Mirant's just dirt cheap."
Atlanta-based Mirant builds and operates power plants and sells wholesale electricity and natural gas around the globe. It has a market value of $5 billion.
Shares of the company, which went public in 2000, sell at a P/E of 7.5, compared to a historical P/E of 13 for rivals such as Calpine (CPN: news, chart, profile).
Mirant said it expects to grow earnings at an annual rate of 10 to 15 percent over the next few years. The company has shown steady earnings in difficult times, hitting profit targets in the fourth quarter -- one of the warmest winters on record.
Mirant earned $1.95 per share last year. Analysts expect earnings of $1.60 this year and $1.68 in 2003.
"We've never been this high in utilities," Calvert said of his fund's 14 percent-stake in the sector.
The AmSouth fund, up 5.7 percent over the past 12 months, added El Paso Corp. (EP: news, chart, profile) to its lineup earlier this year
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