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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (14390)6/14/2002 6:13:49 PM
From: - with a K  Read Replies (1) of 79000
 
Paul, re: ILA. I see it's dropped $5 or so since you posted you were adding some, and it has now shown up on a screen of mine. Even with the bad news for the whole sector, I am interested for the following reasons:

trades at a lower trailing PE and sales multiples than industry ave.
low book value (.47)
forward PE of only 4.7 and PEG of .42
yield of 9.8% (but the board hinted this week that may be lowered)
company announced plans to reduce costs and has identified $100 mil in savings
debt lower than industry average
5-yr EPS growth is faster than industry average

But then there's this from yesterday:

The company also announced that it had received an informal data request from the Securities and Exchange Commission (SEC) regarding potential round-trip trades of electricity and natural gas. Aquila has already responded to various requests by the Federal Energy Regulatory Commission (FERC) by stating that it did not engage in round-trip trades and that all its trades were conducted for legitimate business purposes. Moreover, the company has repeatedly stated that its trading practices are proper and in full compliance with FERC regulations and standards. None of its trades have been conducted for the purpose of increasing volumes or revenues, impacting market prices, or for any other improper business purposes.

Anyone have any input here? Is this a silly time to consider buying ILA?

- Kris
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