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

To: Paul Senior who wrote (38600)	7/24/2010 2:54:44 AM
From: Madharry	Respond to of 78748

nytimes.com Kind of scary . makes me wonder how many similar deals to this one are out there.

To: Paul Senior who wrote (38600)	7/24/2010 12:03:29 PM
From: Investor2	Read Replies (2) \| Respond to of 78748

RE: "Your post indicates a quandary some of us may have who've bought utility stocks in early '09. And that is, that the stock prices have come up on most, if not all of these stocks, and with that, the dividend yields have come down (even on those that have raised their distribution). So what do we do now?" That is similar to a quandary I find myself in regarding my investment in Vanguard GNMA fund. The price has appreciated so much that the yield has now come down to 2.93%, far below the typical yield for this fund. While I recognize that utility stocks are equities and GNMAs are bonds, the investment purpose is not that far apart. What do we do now, when the interest rates have dropped to very low levels? Do you invest a percentage of your portfolio in fixed income investments? Thanks, I2

To: Paul Senior who wrote (38600)	5/3/2011 1:14:40 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

Re: Black Hills Corporation (BKH) - (closed out 1/2 position) Pepco Holdings, Inc. (POM) (closed out position) NiSource Inc. (NI) (closed out position) finance.yahoo.com Digital Realty Trust Inc. (DLR) (started tracking position) Microsoft Corporation (MSFT) (doubled upped previous position) Closed out some utility holdings: POM bought 2/10 @ $15.92; NI 2/10 @ $14.84. Cut back 50% BKH - 5/2009 @ $19.00. All three companies are now selling at PE's that are historically high and forward PE's present no significant bargain. Dividend yields are falling now around 4% (except POM) and future growth prospects are small based on the 25%-75% price gains since my initial buy. I do not expect similar gains in the same time period going forward. To maintain my dividend income stream, I put 1/2 of the proceeds into MHRpD (yield around 8.5% paid monthly) and bought DLR and MSFT. Digital Realty Trust Inc. (DLR) is a REIT that owns data centers that supports the growing "cloud computing" virtual server applications. Company has pricing power and has raised it's dividend payout the last three years (more than doubled the dividend from 2008 levels). Their forward PE based on 12 analysts who cover the company is 13.96 which is quite low for this sector. This is a value/growth (GARP) opportunity w/ a 4.5% dividend kicker. finance.yahoo.com I also doubled upped on my Microsoft Corporation (MSFT) holding as they should be the beneficiary of many of the emerging technologies in smart phones, cloud computing and search. Their legacy software(s) should still maintain market share and they could get lucky w/ several of their ventures into next generation smart phone and cloud applications. Stock is cheap at 9.25 forward earnings. I expect the 2.5% dividend might even be raised as they have lots of cash and stock holders have come to expect a 3% dividend from the company. EKS FWIW also sold 1/2 position in LSI that I had since 10/98. 13 years and only a 32% gain is not very good. Split adjusted it was valued as high as $60.00/share in 2001 making a possible 4 bagger. Don't remember is I peeled any shares off back then but I did make some money writing some covered calls.

To: Paul Senior who wrote (38600)	5/11/2011 12:41:22 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

Re: Black Hills Corporation (BKH) BKH miss on earnings due to shortfall in non-regulated business.. Stock down over 8%. Black Hills Corp. Reports First Quarter Results and Updates 2011 Earnings Guidance SOLID UTILITY PERFORMANCE; PROGRESS ON GROWTH INITIATIVES; NON-REGULATED BUSINESSES NEGATIVELY IMPACT RESULTS finance.yahoo.com ----------------------------------------------------------------------- In the tiny print I do like that the company started drilling on their San Juan Basin property, "...Our oil and gas segment started drilling a horizontal gas test well in the Mancos formation shale in the San Juan Basin in early April. The well is the first of three planned to be drilled in the San Juan and Piceance Basins during 2011. Results for all three wells are expected during the fourth quarter....". EKS