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

To: Paul Senior who wrote (34568)	5/22/2009 4:34:20 PM
From: E_K_S	Read Replies (1) \| Respond to of 78751

Thank's for the feedback on AGL. OGE Energy Corp. (OGE) caught my interest as they have exposure to Wind Power ( oge.com ). Apparently Oklahomah has quite a few wind farms. I believe T Boone Pickens is an investor in many of the wind farms located in Oklahomah. Also OGE Energy owns Enogex LLC, a midstream natural gas pipeline company that has assets in the Woodford Shale area. Operators restricted completions on wells and marked down the value of reserves in this high growth (NG) shale play. Therefore, I believe these assets are selling on the cheap, especially with the very low NG prices. You are paying a little bit more for OGE than AGL but with OGE I get some exposure to both wind and NG resources wrapped up in a regulated utility. From your earlier list, I also own small positions in UGI Corp. (UGI) and Sempra Energy (SRE). UGI has been an excellent performer. I bought my original shares in 2004 for about $16.00/share. Stock split in late 2005. I recently sold half of my original position in early 2009 for around $26.00/share. My largest holding in my utility/consolidator basket is the foreign Brazil electric company PARANAESE DE EN COPL (NYSE: ELP). They have a lot of hydro electric power. Their most current earnings (Q1 2009)were good with revenues up 3.3% and net income up 6.5% Year over Year. Not too bad for a world wide recession. However, the stock is pretty much around the same price I paid in 6/2007. I did generate some income over the years selling some covered calls but this one has been a poor performer when compared to UGI. My strategy is to generate dividend income and obtain growth in the value of these core assets through inflation and/or falling U.S. dollar and/or with the price of higher Oil & NG in the future. EKS