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 (34902)	7/22/2009 10:17:14 PM
From: Spekulatius	Respond to of 78741

I second what Paul said , keep posting your stuff. While I am not interested in many of them it sometimes leads me down new trails. We need knew ideas on this board.

To: Paul Senior who wrote (34902)	7/22/2009 10:20:51 PM
From: E_K_S	Respond to of 78741

RE: OGE Rate hike approved today Okla. utility regulators agree to $48M rate hike Oklahoma utility regulators give tentative approval to $48 million rate hike for OG&E finance.yahoo.com It's a lot less than their original request. From the article:"...OG&E originally requested a rate hike of a little more than $110 million in February..." I do like the individual components of the company but with such a small rate increase, I think future growth is limited (at least until the local Oklahoma economy picks up). Perhaps the non regulated segments of their business will continue to grow and move the stock much higher. The stocks all time high isjust above $40 in December 2006 and has a 50 week MA around $32.00. The upside is perhaps 9%-28%. The dividend is ok at 4.9% PE with a 11.5 PE. I am a buyer of the stock if it falls back between $28-$29. I guess the value proposition is if their non regulated subsidiaries can grow more than 11% and move the overall company PE higher (how about above 14 PE). The analysts target next year's PE at 12 with the company earning $2.83. =============================================================== I like Black Hills Corp. (BKH) with their non regulated Coal & Nat Gas subsidiaries. It still is not a compelling buy at current levels but the company has shown they can surprise on earnings to the upside. PE is now tracking around 12. They recently got a new rate increase approved for their IOWA natural gas operation Black Hills Energy Receives Approval From Iowa Utilities Board to Implement New Natural Gas Service Rates finance.yahoo.com From the article"...The new rates represent approximately $10.4 million, or 5.8 percent, in additional annual revenues for the company's Iowa natural gas operations. The increase is based on a return on equity of 10.1 percent with a capital structure of 51.4 percent equity and 48.6 percent debt. The rate design provides for 56.4 percent of costs to be recovered through the fixed monthly customer charge, up from 48 percent before the rate case, with the remainder recovered through a variable charge on the natural gas used by customers....". The Utility Board was pretty generous with their ROE and recovery of direct costs. At current prices their dividend still yields 6%. I am apt to buy more of BKH on any sell off to $21-$22. My initial buys were in May 2009 around $20.00. The stock has seen $40 in the past 52 weeks almost a double from current prices. I am sure there are many other of these "hybrid" utilities that have businesses as natural gas consolidators, pipeline distribution, coal mining, and various Nat Gas shale plays. It's worth looking at their component subsidiaries especially their non regulated businesses. I have owned some of these where new stock was spun off for their non regulated businesses which ultimately have outperformed the parent company's common stock many times over. EKS

To: Paul Senior who wrote (34902)	7/23/2009 11:47:45 AM
From: MCsweet	Read Replies (2) \| Respond to of 78741

Chinese microcaps, Hi Paul, I should probably be looking at these more closely, but I don't trust management/accounting. Are there any ones that are buying back stock and/or paying a dividend? If they are actually returning money to shareholders (or provide some other indication they are on the up and up), I think they are good buys. Otherwise, I don't feel comfortable with them. ACTS is one I own --- even though it is not profitable, it is buying back stock. Thanks, MC