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Strategies & Market Trends : Value Investing

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To: Robert Graham who wrote (2938)	1/4/1998 8:17:00 PM
From: Dan Packer	Read Replies (2) of 78751

<<Are not many of these utilities heavily debt leveraged, particularily the ones that have involved themselves with the construction and operation of nuclear power plants? How is a company like this going to manage the costs that relate to an upcoming competative and uncertain future that may very well entail a costly reorganization of the company?>> It goes without saying that PUCO has driven this, and it goes without saying that 'stranded costs' are a major issue. Does anyone here have any insight? Repeating shibboliths doesn't improve investment acumen. I'm fishing to see if anyone on this thread has a sense of how to price electrical utilities in the new deregulated environment. In the past couple of years I've had excellent luck with water utilities. I've been able to spot companies that were clearly undervalued on an asset basis. As they moved up to 'normal value' - which was typically an appreciation of 50-100% in stock price, I had the pleasure of banking the dividend which was in the 5% range. My sense is that the same opportunity may be present in the electrics. I just can't figure out the rules. Looking for help. Dan

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