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

To: rllee who wrote (36739)	2/24/2010 10:34:24 AM
From: E_K_S	Read Replies (1) \| Respond to of 78783

RE: Sempra Energy (SRE) Anyone still like SRE on this move? If Spekulatius is right about a heavy short interest, the stock could go a bit lower (perhaps in the $45 range) which would really set up as both a swing trade and excellent LT entry point. Based on valuation, SRE at a 10.4 PE is a good value but again could change if future earning drop significantly from the termination of their energy trading division. If the company announces a dividend increase this may help support the stock price at current levels. My last buy was 20 years ago when the company was San Diego Gas & Electric. I would like to add more shares as the potential growth prospects for NG in Mexico are huge. FWIW I started a position in Ameren Corporation (AEE) today. It is selling off after a good run. At prices below $25/share is a good entry point. Dividend yield 6.1% w/ only a 55% payout ratio, forward PE around 11 and some exposure to nuclear. There was some discussion about tough regulatory reviews combined with a dividend cut last March 2009 has impacted the relative strength. I do look for an eventual reversion to the mean to the $33-$35 price range. If the company announces a "fast track" schedule for the expansion of their nuclear capacity and some type of clean coal and/or coal conversion to NG may provide the LT investor a better outlook on AEE's future. EKS