Hi guys..Anybody here understand what's going on with the utilities?
Energy merchants set 52-week lows
Allegheny leads selling spree with TXU not far behind
By Lisa Sanders, CBS.MarketWatch.com
Last Update: 11:13 AM ET Oct. 8, 2002
NEW YORK (CBS.MW) - A raft of energy merchants established 52-week lows Tuesday as pressure from Allegheny Energy, in technical default on credit agreements, stilled any investing enthusiasm in the group.
Allegheny (AYE: news, chart, profile) shed more than 50 percent to a 52-week low of $3.75. This, after the power generator and supplier said it's in technical default under its principal credit agreements. The company also said it expects to post lower-than-expected 2002 and 2003 earnings than expected because of ongoing weakness in the market for wholesale energy.
TXU (TXU: news, chart, profile), which lowered profit forecasts last week, suffered continued fallout from the news, shedding close to 34 percent to trade at a 52-week low of $15 a share. The stock was the top mover on the New York Stock Exchange with volume of 11.6 million shares.
In second place was Duke Energy (DUK: news, chart, profile), down 5 percent to $17.50 on volume of 10.6 million shares.
Also under pressure was Teco Energy (TE: news, chart, profile), which cut its earnings outlook because of plans to issue new shares. The stock fell 13 percent to a 52-week low of $12.56.
Others hitting 52-week lows were El Paso (EP: news, chart, profile), Calpine (CPN: news, chart, profile), Mirant (MIR: news, chart, profile), American Electric Power (AEP: news, chart, profile), Dominion Resources (D: news, chart, profile), and Reliant Resources.
Reflecting the trading action in the stocks, the Philadelphia Utility Index (UTY: news, chart, profile) lost 7 percent. The Amex Natural Gas Index (XNG: news, chart, profile) dropped 2 percent.
Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com. |
