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

To: rllee who wrote (38540)	7/16/2010 8:24:43 PM
From: E_K_S	Respond to of 78692

Hi rllee - RE: Gas Natural Inc. (EGAS) I first learned about EGAS on the Dividend Investing for Retirement thread based on a post by Steve Felix. Message 26669131 You can check out the discussion there. There is a proposed secondary stock offer of 2 million shares. This will dilute the outstanding shares (now 6 million shares). You might want to wait until AFTER the secondary is settled. I suspect it will be done as a private placement. A whole host of very positive things could occur if the buyer of the secondary (1) takes all 2 million shares and (2) already is a mid to large player in the NG integration business. This is all speculation on my part because nothing is really known at this time. The stock seems like a good value at current prices and could be worth much more by a potential acquirer. I own a small tracking position and am watching how the story plays out. EKS

To: rllee who wrote (38540)	7/17/2010 10:10:03 AM
From: E_K_S	Read Replies (1) \| Respond to of 78692

Hi rllee - Here is a recent Seeking Alpha article on EGAS (April 2010) Energy Inc: Roll-Up Gas Utility With Nice Yield and Growth Prospects seekingalpha.com From the article:"...Below is a comparison of current valuations, with peers in ( ): * Price to Sales: 0.63 (2.1) * Price to Cash Flow: 2.7 (6.2) * Price to Book: 1.2 (2.4) * Price to Earnings: 10 (20) Investors looking for an under-followed, micro-cap, regulated natural gas utility with heavy insider ownership and interesting growth prospects should review Energy Inc. Based on improving investor exposure and a closing of the valuation gap, my personal price target over the next 18 months is $14, plus the cash dividend, for a 22% annual return. Like many small cap companies, due diligence starts with SEC filings and the company website: ewst.com..." =========================================================== EKS