Aaron L. Task (The TaskMaster) column which lit the lightbulb in Cramers head that Enron was a good investment at the time.
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Turn on Your Heart Light
Dined last night at Scala's Bistro courtesy of my fiancee's (sorry gals) cousin, who happens to be heavily involved in power marketing.
After he explained the intricacies of utility deregulation (did I mention the delicious calamari appetizer?) and said we will all someday be able to choose our energy provider (just like long distance!), I asked cousin to get down to brass wire -- what should investors do?
Eventually, he said, a few big outfits will offer the entire range of utilities, including telecommunications as well as gas, electric, and water. Being a fan of those strangely compelling cartoons, I asked about Williams Cos (WMB:NYSE) which boasts a very profitable telecom business.
Yes, Williams is at the forefront but my future in-law was far more enamored with Enron (ENE:NYSE). If I was Maria Bartiromo and he was an analyst, I would say cousin was "pounding the table" on Enron. But I'm not and he isn't. Interestingly, he's also NOT employed by Enron but by a rival who I won't name to protect his job (he's family, after all, and I'm hoping for a nice wedding gift).
Enron rose a fraction today but the stock has been anything but a boring utility. The shares have climbed steadily since the market's lows of last September and roughly doubled in that time span. A 2-for-1 stock split is scheduled to take effect Aug. 13. (Entry point, anyone?)
Cousin also recommended would-be investors search for regional power companies, believing their days as independents are few. (I never got to ask for specifics because the main course was being served and "the missis" was giving me those "stop talking about business" glances, effectively supported by a few "stop this now" kicks under the table.)
Ain't love grand?
thestreet.com
Commentary : The TaskMaster
Taulli Confirms His New Job at Internet.com
By Aaron L. Task
Senior Writer
7/28/99 10:42 PM ET |
