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

To: Steve Felix who wrote (35003)	8/5/2009 3:35:28 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

Hi Steve - Re: TE, PPL & SWX TE is interesting. Analysts estimate their 2010 earnings at $1.22/share which translates to a PE around 11 at current prices. The dividend yield is good at 5.9% which reflects a 96% payout ratio which is pretty high. Also, I did notice some insider selling at $11.00. Don't expect any dividend increase soon. I do like that they have interests in "mineral rights" and other mining facilities. From Yahoo: "...TECO Energy owns mineral rights; and owns and operates surface and underground mines, and coal processing and loading facilities in eastern Kentucky, Tennessee, and southwestern Virginia. The company was founded in 1899 and is headquartered in Tampa, Florida....". Their mineral rights may be a hidden jewel which they could sell or spin off. PPL is a bit more interesting because of their size, exposure to nuclear and is diversified with interests in Europe. Their European interests had a positive contribution to PPL's otherwise disappointing earnings. I bought SWX three month's ago and it is already up 25% from my purchase price. I am tempted to sell this and buy PPL and perhaps a starter position in TE. Southwest Gas Corporation Reports Second Quarter 2009 Results istockanalyst.com SWX's yield is now around 3.8% and analysts estimate 2010 PE at 12, I may continue to hold through Nov to see if these new rate increases are allowed. From the article:"... Southwest Gas has two rate cases pending before the state Public Utilities Commission. The first, a general rate case through which the company would recoup operating and business costs, would boost residential rates 6.9 percent, or $5.53 a month, in winter, and 6.7 percent, or $2 a month, in summer. The second is a deferred-energy filing to account for purchased-fuel expenses, which the company must pass directly to consumers without taking a profit. It would cut the typical monthly bill by 1.3 percent a month, or 89 cents, in winter, and 1 percent, or 31 cents a month, in summer. Company officials also said in July that they would file two more cases in coming weeks...". I will add TE to my watch list but it's already had a 23% run in the last month, I will wait to see if I can buy some shares in the $11-12 price range. EKS