Utilities

sjwohio · Posted: Mon Jul 21, 2008 10:55 am Post subject: Utilities

What is the strength in utilities telling us today? Question

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SJW

Odysseus · Posted: Mon Jul 21, 2008 8:08 pm Post subject:

The utes will probably be the second industry re-regulated, after airlines of course.

Just talking off the cuff but I was one of the sherpas who had to analyze rates of returns for southwestern utilities so they could justify rate increases pre dereglation. What a bad job assignment. Tons of political pressure from both sides.

I just wonder what the PEs will be on these servants of the public good when the 10 year is selling to yield 12%... Scary. But that is down the road a few years.

I can just see the reaction of T-Bone Pickens when his wind farms are nationalized.

Check out the electricity futures markets on the WSJ futures page. Eventually we'll have to subsidize those window units in Warren's doublewides...
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Psychic with Alzheimers. I can predict what I will forget.

diesel · Posted: Mon Jul 21, 2008 7:16 pm Post subject:

That is my thinking. It wouldnt suprise me to see the 10 year back over 4 1/2 soon.
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“I was once Snow White, but I drifted” – Mae West

sjwohio · Posted: Mon Jul 21, 2008 7:00 pm Post subject: Utes

Thanks that was what I was thinking. Saying rates going up?
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SJW

diesel · Posted: Mon Jul 21, 2008 5:07 pm Post subject:

Probably just rotation into a more defensive asset class. Not where I would be parking my money though given the steep valuations, waning breadth in that sector and clear h&s top pattern in the dow utility index.
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“I was once Snow White, but I drifted” – Mae West