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

To: Paul Senior who wrote (71589)	11/17/2022 9:23:32 PM
From: E_K_S	Read Replies (3) \| Respond to of 78666

I do not know if you invest in boring utilities but I have been building a basket of these specifically starting new positions in, ALE, NWE,NRG (NG/Electric Utilities) in 8/2022 and selling WEC & D. I also have owned SRE for over 30 years and have added to that during the same time I started the new positions in the NG/Utilities. SRE has a NG subsidiary w/ plans to build a LNG facility in Baja Mexico. ( Sempra Targeting Mid-2025 In-Service for Mexico LNG Export Project) SRE is my largest position 4x that of ALE and is a No 4 portfolio position. The Sempra Infrastructure group includes the company's energy infrastructure development activities, investments and operations: Sempra Mexico, Sempra LNG & Midstream and Sempra Renewable. San Diego Gas & Electric is a regulated public utility that owns and operates a natural gas distribution, transmission and storage system that supplies natural gas to major part of Southern California and portions of central California. Southern California Gas Company is a regulated public utility that owns and operates a natural gas distribution, transmission and storage system that supplies natural gas to major part of Southern California. Below is the 1 year chart for the ETF XLU: XLU fell almost 20% in Sept/Oct and since then has rebounded 9% I over weighted ALE & NWE but SRE is my largest portfolio holding in the group as it is the oldest which I got as a spin off from San Diego Gas & Electric. --------------------------------------------------------------------------------------------- My investment premise was a reversion to the mean play, especially for ALE & NWE. These two I started adding in August 2022 w/ adds each month thru October. To my surprise ALE is +32% & NWE +13% small compared to ALE --------------------------------------------------------------------------------- I guess it shows that markets (even utilities) can over correct and specific stocks w/i the sector can rebound significantly w/ only a few upgrades w/o specific stock news. I got lucky as ALE was new to me but had a few subsidiary companies (including water & a 'clean energy' unit). ALLETE is an energy company. In addition to its electric utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, U.S. Water Services headquartered in St. Michael, Minn., BNI Energy in Center, N.D., and has an eight percent equity interest in the American Transmission Co. FWIW D has never recovered and I closed that position out in 8/2022 after holding it for several years. Maybe it is time to look at it again for a reversion to the mean play. Below is Dominion Resources (D) -38% in the same period w/ no rebound w/ 4.48% div yield.