Started a small position in Nisource Inc. (NI).
finance.yahoo.com
The company operates through four segments: Gas Distribution Operations, Gas Transmission and Storage Operations, Electric Operations, and Other Operations. As of December 31, 2008, it served approximately 3.3 million customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana, and Massachusetts, as well as operated approximately 57,466 thousand miles of pipeline. The Gas Transmission and Storage Operations segment owned and operated 16 thousand miles of interstate pipelines, and operated underground natural gas storage systems capable of storing approximately 629 billion cubic feet of natural gas.
I like the company for it's NG operations but it's not a pure play.
Here is a listing of all their subsidiary companies most of which are related to servicing the NG industry.
nisource.com
The company pays a 6% dividend and is selling at 13x next years earnings (not cheap but not too expensive compared to its competitors).
The company's BV is around $17/share and is presently selling at 0.9x book. They own a lot of NG pipeline assets which could be undervalued if they are carried on their books at cost.
Stock is up from it's lows of $8.00/share in 3/2009 but is still below it's long term 50 month MA of $17.25/share. Today the stock broke down through it's 50 day MA of $15.00/share and is still well above it's 50 week MA of $12.50/share.
Will look to buy more shares in the $13.50/share level if the correction is sustained.
EKS |
