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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Sweet Ol who wrote (17097)	10/9/2002 11:02:51 AM
From: jim_p	Respond to of 23153

Next big play will be the uts. Don't be late to the party. Now is the time to buy buy buy!!! Jim Utilities: How Much More Damage Can They Withstand? (Wed Oct 09 08:44 2002) A bond default at Allegheny Energy triggered a sharp sell-off in the S&P utilities sector yesterday, reinforcing investors fear about widespread credit risk. However, for traditional utilities, i.e. electric companies that did not get caught up in the energy trading bubble, there are signs that credit quality is improving. Electric company bond spreads have narrowed further relative to other corporate bonds, although they remain above pre-scandal levels. Heightened credit concerns, along with weak electricity prices, have been a major force holding back the relative performance of the S&P electric companies index. A further narrowing in spreads would be bullish. Meanwhile, the 52-week rate of change of the relative ratio continues to churn near neutral levels, confirming that it is premature to declare that a relative bull phase is unfolding. We have this group on upgrade alert (with a neutral weighting), awaiting a further easing in credit risks before moving to an overweight.