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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (34310)	5/8/2009 1:58:25 AM
From: Spekulatius	Read Replies (2) of 78731

re CNP - I checked on this one finally. What is interesting about CNP is that it's a pure transmission play - CNP does not own power generating plants any more. The growth seem to come from the NG pipeline operation. I was surprised to see that the biggest segment - electric transmission had shrinking earnings for quite a few years - out of luck with the regulators? Texas can be a tough state for regulated business. files.shareholder.com Valuation seems OK with 7x EBITDA, but it seems that the high debt load and unfavorable regulation are major negatives. I'd be concerned about a dividend cut if I owned this stock. FWIW - have you looked at AEP. lot's to coal but cost passtrough should negate cap and trade cost increases, i think. They have the most transmission assets of all utilities.

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