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Strategies & Market Trends : IPPs and Merchant Energy Co.s -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (136)	9/23/2002 7:45:54 AM
From: Larry S.	Read Replies (1) \| Respond to of 3358

I want to comment on just one part of your analysis: <<My rank of them in terms of survivability is DUK, AYE, REI, ILA.>> TO me, there is no question that the first 3 will survive, and a high probability that ILA will too. It is the magnitude of the potential rebound in these stocks that makes ILA so attractive. DUK and AYE are very solid companies, presently spooked by the merchant energy problems. REI has substantial "basic utility" assets, and the division of the company into REI and RRI will strongly help the REI component. ILA, the old Utilicorp, has the potential to be a 10 bagger in a few years. BTW, perhaps we should add TE, TECO energy, to the list. They are an old-line electric utility in Tampa Fl, that has 4 major merchant energy projects under way. Concerns about their ability to sell the power from these new plants has caused the stock price to crater from mid-20s to mid teens. TE has increased their dividend every year for at least the past 40 years, and not by just token amounts. larry