Bob,
Feel the same on utilities.
I just had an interesting conversation with a local Union electrician. He's starting six months of work at Commonwealth Edison next week. Seven days a week, 12 hour days, $28.00 per hour plus benefits. Over $4,000 a week. Cost to company over $6,000 per week.
IMO - Utilities have a government mindset that prevents profits in an open competitive market. With deregulation and time, the weak will be weeded out and the strong survive, but which is the weak and which the strong? The trick is chosing correctly. This goes to the argument about management track record. In the case of utilities there are no track records for management because government regulation has given them a guaranteed profit.
Utilities have always been a good income stock due to their high dividends, but with highly unionized labor forces, EPA restrictions, and no history of profit incentive, deregulation may mean utilities are in for a rough ride.
JMHO,
Ron |
