Category: US Utilities
The analysis published under this category are as follows.
Friday, April 06, 2012
If You Think All Utility Stocks Are The Same - Think Again / Companies / US Utilities
By: Charles_Carnevale
I have recently seen comments on articles oriented to the dividend growth investor where people were suggesting that in general, utilities have recently become overvalued. Further discussion indicated that this was probably due to the fact that bond yields were so low that people were flocking to stable utility stocks in lieu of bonds therefore driving utility stock prices to abnormal highs. This article is primarily designed to take a more specific look at whether or not utility stocks as an asset class are currently overvalued. Secondarily, it is offered to expose the fallacy of thinking in generalities rather than more specifically.
Tuesday, September 07, 2010
Pump Up Your Investment Portfolio with Utilities Stocks / Companies / US Utilities
By: Money_Morning
Larry D. Spears writes: There was a time when the words "widows and orphans" pretty much defined utilities stocks. As well-regulated monopolies whose products were in constant and increasing demand, they provided a steady stream of income with a level of safety adequate for even the most conservative portfolios.
Because of more competition, looser rate regulation, and slower growth, utility stocks aren't quite the safe haven they once were. But with interest rates at all-time lows and continuing economic turmoil, they still have something to offer most investors.
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Friday, August 20, 2010
Utility Sector Divergence Between Smart and Dumb Money / Stock-Markets / US Utilities
By: Guy_Lerner
The Utility Sector is thought to be a safe haven in the time of market duress. There is no question that the market is under pressure, but I would be very careful about betting on the assumption (dogma?) that safety will be found in the Utility Sector. Currently, it should be noted that utility company insiders are net sellers of their shares to an extreme degree.
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Tuesday, June 22, 2010
Cheap Big American Utilities Paying Big Dividends / Companies / US Utilities
By: The_Energy_Report
Big American utilities pay big dividends, some as high as 8% among regulated utilities, and right now they're as cheap, relative to the bond market, as they've been in about a quarter century. If you like investments as income, few people who know the utilities equities better than Morgan Stanley Analyst Greg Gordon. In this exclusive two-part interview with The Energy Report, Greg eloquently and frankly explains the utilities market and offers some picks in the regulated utilities space. Part II will focus on Greg's picks among the deregulated utilities.
Monday, January 26, 2009
Constructive Pattern in XLU Utility Stocks ETF / Companies / US Utilities
By: Mike_Paulenoff
Apart from my sense that the Obama Administration is pro-energy efficiency, conservation, and "alternative," all of which implies a potential increase in electricity usage and production during the next 4-8 years, the technical set-up in the SPDR Select Utility ETF (AMEX: XLU) is very constructive.Read full article... Read full article...
Friday, April 25, 2008
Why Utilities Stocks Beat Treasury Bonds / Stock-Markets / US Utilities
By: Money_and_Markets
Nilus Mattive writes:I recently read an article on Forbes' website that attempted to help income investors compare the merits of utility stocks and U.S. Treasury bonds.
On the bad news side, the column noted that the yields on both utility shares and 10-year Treasuries are down about 50% since the beginning of 1995. Ouch!
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Monday, February 25, 2008
Utilities Sector Better Positioned to Weather Recession and Dividend Cuts / Stock-Markets / US Utilities
By: Roger_Conrad
Even in the best markets, dividend cuts are poison for income investors. Not only is your regular cash flow cut, but your principal typically takes a haircut as well.
Generally speaking, it's almost always best to avoid companies in danger of cutting dividends. The key is to pay close attention to operating businesses. As long as companies are coming in with solid numbers, dividends will be maintained and even increased.
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Wednesday, January 16, 2008
Utility Stocks Stll Positive Trend / Stock-Markets / US Utilities
By: Mike_Paulenoff
My overall work is telling me to remain long the XLU unless it breaks below the January 4 pivot low at 41.86. It is with that in mind that I intend to ride out this pullback ahead of the emergence of a new upleg that propels the sector to new highs in the 45.50-46.00 area.Read full article... Read full article...
Sunday, October 28, 2007
Utilities Analysis - Telecoms, Steel and Energy / Companies / US Utilities
By: Roger_Conrad
Is cable's goose cooked? Is the jig up on what's been torrid growth for the past few years? Are the big phone companies finally going to bury them?
That's certainly the line being trumpeted by the financial media this week. Once investor darlings, cable television stocks have plummeted in recent weeks, with the selling accelerating as third quarter earnings season has gotten underway.
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Monday, October 15, 2007
A Skeptical Eye On The Promised Demise of Big Utilities / Companies / US Utilities
By: Roger_Conrad
I've never been impressed by hype surrounding supposedly “disruptive” new technologies—developments billed to change the balance of power in an industry. And my skepticism meter goes positively off the chart when the claims pertain to communications and other utility-like industries.
Wednesday, September 05, 2007
Another Domino Falls as US Electric Power Deregulation Roll Back Continues / Companies / US Utilities
By: Roger_Conrad
When California passed its long awaited electricity deregulation law in 1996, it was supposed to signal the start of a revolution.
Proponents had argued for years that breaking up utility monopolies would trigger an explosion in generating capacity.
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Saturday, July 21, 2007
National Champions as Key to Success for Utilities Companies / Companies / US Utilities
By: Roger_Conrad
Regulatory support: That's the key to prosperity for energy, communications and water utilities all around the world.
If relations with the home country government are good, all will be well with the utility. Investment in infrastructure will be rewarded with competitive returns. Major challenges will be hurdled with minimal disruption or financial instability. And the company's investors will be rewarded with strong long-term total returns.
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Saturday, July 14, 2007
US Energy Policy Changes and Potential Profits / Companies / US Utilities
By: Roger_Conrad
Talking policy is cheap. Creating and implementing something that works is an entirely different matter. Just ask the army of politicians, bureaucrats, industry executives, academics, consumer advocates and analysts now working on major potential regulatory changes in the energy and communications industries.
The newly installed Democratic Congress has stated two goals for energy policy: promoting US energy independence from the increasingly volatile Middle East and curtailing emissions of greenhouse gases that produce global warming.
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Friday, July 06, 2007
Financial Markets Update - Ahead to US Elections 2008 / Politics / US Utilities
By: Roger_Conrad
Political parties' power waxes and wanes in Washington, DC. But regardless of who's in or out, the size of our federal government and its social and economic mandate continue to grow, for better or for worse.
At its core, politics is about interest groups. Those who get their views heard and acted on are the winners. Those who don't—or, worse, are trumped by others' interests—are the losers. And the larger the government grows, the more critical it is to be on the winning side.
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Saturday, June 02, 2007
US Interest Rates and Credit Ratings of Utilities / Companies / US Utilities
By: Roger_Conrad
Major credit raters like Standard & Poor's aren't perfect. But few sources provide more exhaustive research on the financial health of corporations, governments and anyone else who issues debt in the public markets.
For individual utility companies, a solid credit rating means a lower cost of capital and ultimately more-competitive rates and higher profits. For investors, an improving rating is a good sign the underlying business is strengthening—and that the company (and stock) are going to gain value over time.
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Thursday, May 24, 2007
Utility Futility Suggests the Bear is Growling / Stock-Markets / US Utilities
By: Brady_Willett
With S&P 500 bank/financial stocks the worst performing sectors so far in 2007, it is becoming clear that the inverted yield curve has damaged investor confidence in the group. Conversely, with utility stocks the best performing sector this year, it is obvious that investors have continued their defensive hunt for yield. Suffice to say, given that financial stocks typically outperform early in the cycle and utilities tend to beat other sectors late (or in the down cycle), the action in 2007 would seem to suggest that the bear is growling.Read full article... Read full article...
Friday, May 18, 2007
Utility Stocks, REITs, Canadian Trusts, Carbon Regulation, Interest Rate Outlook, Enerplus Resources & ETFs / Companies / US Utilities
By: Roger_Conrad
QUESTIONS & ANSWERS : Greetings from the Las Vegas Money Show conference. For attendees, investment seminars are always a golden opportunity to learn a range of perspectives. At the same time, it gives advisors like me a chance to better know readers' concerns and interests so we can do our job better.
In addition to several other events, I gave three presentations in Vegas on Canadian trusts, utility stocks and the likely beneficiaries of almost certain carbon regulation. Here's a sampling of the questions I received during my own presentations at the show, along with my answers.
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Saturday, May 12, 2007
Strategic Investing in Telecommunications, Utilities From 30,000 Feet Up / Companies / US Utilities
By: Roger_Conrad
Earlier this week, I got a call from a reporter at a major newspaper, asking for my “view from 30,000 feet up” on the power industry. Big picture perspectives are most useful when they help us to see the forest as a whole, rather than just tree-by-tree. They're downright dangerous, however, when analysts fall in love with their prognostications.Read full article... Read full article...
Saturday, April 28, 2007
Bigger and Better Utility Companies / Companies / US Utilities
By: Roger_Conrad
Size and scale have long been secrets to success in the business of providing essential services. Since the advent of mass-distributed electricity, natural gas, communications and water more than a century ago, companies have consistently become more profitable by getting bigger.Read full article... Read full article...
Saturday, March 31, 2007
Regulation Rules - The Risks of falling out of favour with the Industry Regulators / Companies / US Utilities
By: Roger_Conrad
When it comes to utilities' long-term profitability and performance, nothing is as important as regulation. In fact, nothing even comes close.
A good relationship with regulators can restore even the weakest player to health. And history is littered with examples of hostile relations ultimately wrecking even the most vibrant company's prospects.
Up until the late 1970s, US utilities operated under what came to be known as the regulatory compact. In recognition of the long-term, capital-intensive nature of building and maintaining essential service infrastructure, federal and state governments granted utilities monopolies. Companies were allowed to recover all prudently incurred expenses in customer rates, along with a solid return on invested capital.
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Monday, March 19, 2007
Another View on the recent Stock Market Panic / Stock-Markets / US Utilities
By: Roger_Conrad
Speaking engagements are one of the more useful aspects of my job.
This weekend, I'm at the Renaissance Waverly Hotel in Cobb County, Georgia, for the WealthExpo.
I look forward to meeting many readers and hearing of their concerns and queries, and I'll be summing them up in next week's Utility & Income. Utility Forecaster subscribers please note: This issue's Roundup has a brief, between-issues roundup of every Portfolio recommendation.
As the past week's extremely turbulent market events showed yet again, the world's investment markets are increasingly connected.
Events that may seem wholly unconnected on the other side of the globe are increasingly affecting investors everywhere.
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Thursday, March 15, 2007
US Utilities Analysis - The Greed Factor / Stock-Markets / US Utilities
By: Roger_Conrad
“Greed is good,” says Michael Douglas' Gordon Gekko in Oliver Stone's cult classic, Wall Street. Undeniably, the world's financial markets are based on self-interest, which is why they work so well moving capital around the globe. Money will only go where it can be used profitably--that is, filling a need and thereby increasing the world's wealth.
Markets work best, however, when the self-interest driving them is enlightened. In other words, there's a huge difference between decisions made solely to grab a big payday and those based on sound business principles.
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