Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dan Packer who wrote (2942)	1/5/1998 12:21:00 AM
From: Ron Bower	Read Replies (1) \| Respond to of 78751

Dan, I love the "repeating shibboliths doesn't improve investment acumen" and you are right. If I were interested in power utilities, I would look at them the same way I would natural gas - the companies that control the power sources (gas wells) and the distribution (from the wells to the customers) will likely control the market. I would discount any companies that buy for distribution except as acquisition targets. I likely would also stay away from those companies with potential environmental problems. After all of this is considered, I would look to areas of high growth. If it were me, I'd look for an undervalued company in the Southwest or far Northwest with hydroelectric power generation that is also a distributor. One that has been expanding. I would allow them to have a heavy debt load and low liquidity because it would likely be due to expansion of distribution. Did you make the appreciation on water utilities recently when the market moved to income stocks or was it earlier in the year? Either way, it was excellent investing to have monies in a safe income sector and getting a 50-100% return. What criteria did you use when you bought them to determine they were undervalue? For what it's worth, Ron