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

To: Spekulatius who wrote (42675)	5/16/2011 12:17:30 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78653

re RWEOY: Sounds like it could be bad for the company. In the US I believe utilities are often entitled or permitted by law to earn a specified rate of return on their investments (book value). I don't know how regulators allow rates to be set and changed in Germany or other places where RWEOY operates. I'll presume though that if Germany's old nuclear plants are shut down, that energy supply will have to be made up elsewhere to meet demand, and that any investments that RWEOY will make thereto will earn RWEOY an okay return. Perhaps the stock will drop further if cash flow decreases and dividend is reduced with that. Longer term RWEOY and stock should be in good shape. Imo.