Utilities

[Danny]

Just bought some XEL - paying 4.5% dividend.

Thinking that when the fed starts cutting rates and cd rates follow suit, that utility shares will tend to rise.

Make sense to you?

Want to add some more utilities.

Any thoughts?

 

[haha]

Here is an excellent article about managing risk in individual stocks, particularly utilities and income stocks, written by a guy named Roger Conrad.

I especially like natural gas and crude and product pipelines, as well as gas gathering' compression and storage. Once this stuff is built it lasts a long time and requires relatively little ongoing capex when compared to eclectic utilities. Most spending is on new service, with its own new revenue stream rather than on maintaining what is already in place.

Over the long term our economy has to move toward greater use of electricity, I hope from nuclear powered generators. For a long time though, whatever new generation comes on stream will make extensive demands on NG- so the same things that might move electric utilities will be favorable for gas pipeline companies.

18 or 24 months ago there were gas utilities such as Equitable that also had considerable reserves and production that really were not being credited in the market price. When bought right these tend to be one decision stocks. There may still be some of these opportunities, especially after the recent market turmoil.

FSO Editorial: "Doubling Down" by Roger Conrad 09/08/2007

Ha

 

[unclemick]

In the past when I was younger, had more hormones and was even more sinful than even now - I subscribed to Roger's Newsletter and made big 'double down type' bets via DRIP plans on stocks he low rated - my biggest winner when 'nuclear' was out favor was good old Commonwealth Edison (now Excelon). My biggest dud - Saint Joseph Light and Power - they tryed to become an Enron - unfortunately they succeeded - I still am making a late bet on them as Aquila(ILA) trying to get some merger gains.

1989 on I may have peaked at 15 utes(electric, water, gas,). Bet both with and against Roger at times - don't really remember when I let the newsletter lapse.

Aquila, Con ED, Empire District Electric, Excelon, Keyspan(Long Island Light) went this week, National Fuel Gas, Aqua America(lone survivor water ute).

More fun than a racing form.

The Norwegian widow says 'keep a grip' stay with Bogle.

85% Target Retirement 15% or less Norwegian widow stocks.

heh heh heh

 

[Danny]

Thanks haha for your take and that link, never heard of him before

 

[Danny]

Aquila, Con ED, Empire District Electric, Excelon, Keyspan(Long Island Light) went this week, National Fuel Gas, Aqua America(lone survivor water ute).

heh heh heh

uncle, when you say "went this week" - you mean you sold them after 17 years of holding ?

 

[Lakedog]

The only utility I have owned (for several years) is Southern Company (SO). This is a well-managed company and has been a very good investment, currently pays around 4.5% div.

 

[unclemick]

uncle, when you say "went this week" - you mean you sold them after 17 years of holding ?

Nope - the dang fur- a - ners bought them out. My check is in the mail. They made me an offer I couldn't refuse.

Those folks need to learn to spoke English - er Scotish or something.

heh heh heh - some days they just force you to make money(cap gains) - instead of a few good dividends. Which per the great guru Yogi Bera is almost as good.

National Grid (England) - not really familar with the company.