Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (34543)	5/21/2009 12:34:43 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78708

re Utilities - you are preaching to the choir. I think utilities are one of the most undervalued stock groups now in the US market. Plenty of stocks to choose from with an PE of 10, 5% yield, some trading below tangible book. 5% earnings growth through all economic cycles seemed lame just 2 years ago but nowadays it seems very good. Names I own: AVE, AEP( just back in today with a smallish position), SWX, CNP, also AWK (but this is a water utility). Names I am looking at D, FE, SCG, POR

To: Paul Senior who wrote (34543)	5/21/2009 9:02:18 PM
From: Spekulatius	Read Replies (3) \| Respond to of 78708

Yep utilities. I like them when the price is right and now it is. I don't mind if my portfolio looks like that of an old gheezer as well. More CNP today and some SCG (South Caroline regulated electric & gas. Another one to look at is AYE. Beloved by analysts (contrarian indicator it seems) and now down to do the panic regarding the power auction and lower earnings projections. Does not look that cheap on current earnings but does look cheap based on forward projections. They also own and develop know transmission projects. Earnings are supposed to surge because their locked in power rates are below market and as they expire their revenues and earnings are bound to rise. Well that is what it was supposed to be - maybe somewhat less so than expect although it does seem like the basic story is still there. SCG on the other hand is just relatively cheap, boring and pays dividends.

To: Paul Senior who wrote (34543)	5/27/2009 10:28:21 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78708

D 30.38$, AGL 28.2$ My portfolio looks like that of an old geezer: Mostly consumer staples (overweight NSRGY and UL etc.) and now lot's of utility stocks. Today I added D and thread favorite AGL. Yesterday i let go of my SWX after the 5% rise. I don't own any industrial stock financial or tech stock right now - I don' want to overpay for the green shoots. My concern is that those green shoots may just turn out to be the tip of a nuke rocket buried into the ground. D is a nice outfit (imo) with regulated power, wholesale, NG infrastructure. I like the fact that they sold their E&P at peak prices in Y2007 so they seem to know about capital allocation. S&P has 5 stars on them but of course that isn't worth much. Quite a bit of volatility even in this very calm market (compared to late 2008) in the most boring segments.