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To: Paul Senior who wrote (13428)	12/12/2001 8:21:51 AM
From: Dale Baker	Respond to of 78476

UTH is another broad way to play the utility sector without much single-company risk.

To: Paul Senior who wrote (13428)	12/12/2001 9:47:49 PM
From: Spekulatius	Respond to of 78476

As mentioned on this thread, UTH, is better than IDU, since it apparently is more liquid. I have researched some electricity utilities and the most enticing one I found was REI. REI is located in Texas and will split itself up in a Power generation (RRI, which REI owns 80%) and the remainder - the regulated power distribution business. Debt is 1.2 X equity which is on the lower range for utilities, Div yield 6% and PE around 8. I checked quite a few utilies for Low PE, low leverage but most of the ones that i found have some sort of a problem (lawsuits takeovers etc. etc.). I'd also like EPG if they go in the mid thirties. I don't have a position yet in any of the above utilities but might decide to buy soon. I think that we are due for more bad news in the sector, as the unregulated electricity companies will see weak demand and much lower prices for their product. This might lead to some high leveraged players going out of business (CPN would be my best guess...) Anyways, i gobbled up some MRK and a reasonable position in BMY as i like their midterm pipeline, even though near term outlook is a little weak. MRK has a higher execution risk, since its very dependent on a few blockbuster drugs, but it has probably the best research in the industry. I also like the fact that they bolster R&D spending. Compared to the rest of the market, pharma stocks are undervalued.