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

To: E_K_S who wrote (34567)	5/22/2009 2:44:19 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78748

I looked at AGL from the Graham screen for utility stocks, and I passed on it, and instead chose two others. Looking again at AGL after your post now, now I'm not sure why I didn't buy AGL. Mostly rising bv from '03 onward (dropped '02-'03), and looking at stated bv now of 1.2x, the stock often traded >1.8x in past years (on average). Otoh d/e has been increasing. In past ten years stock has traded at roughly 12-14 p/e. Now it's at 10 maybe (on analysts' estimates). USA seems to have abundant supplies of natural gas (Haynesville, other shales), and as a regional distributor, AGL "should" participate as USA increases its usage. aglresources.com Dividend yield is a satisfactory 5.9%. This is a small company (I'm looking at employee count: just about 2400 employees). If there's any further consolidation in the sector, maybe (?) AGL would be a candidate for an acquirer. I'm still considering the several utilities mentioned here by others: SCG, SRE, WMB, etc. There seem to be an almost overwhelming number of possible companies to consider. And a lot of factors too. I'll step up for a few shares of AGL now though. If stock retraces on no adverse news, and/or as I become more familiar with the company, I'll add to build a position. si.advfn.com^AGL