(03-27-2021, 06:29 AM)crimsonghost747 Wrote:Certain sectors are just better for certain states, regions or countries. I am quite comfortable with a Canadian bank, California tech company etc. Utilities not so much. I never saw so much drama in the sector until a few years ago with the CA forest fires, rolling blackouts, insolvent major utility company. Then Texas said "hold my beer and watch this"(03-27-2021, 04:21 AM)fenders53 Wrote: SRE is a California based utility. If any of my utilities announce that I will sell them before the market closes.It's risk I don't need in a utility investment. Favorable and stable regulatory environment is important to a regulated utility. Other than that SRE looks good.
Thanks for this.
I knew there had to be something that I'm seeing because it just looked cheap compared to many other utilities.
Texas is not regulated if you weren't aware. This doesn't occur in most US states and a 20yr chart of a major quality UTE is evidence of stability.Investors were programmed to consider a utility stock as a bond equivalent. That used to be true. Now it's only true if you buy a UTE with a higher current Div and 1% growth rate. I believe the better ones will perform much like a DGI stock over the next ten years as they transition into a mix where renewables comprise 50% or more of the mix. There is a lot of change between here and there. I am glad the US companies waited until it was cost efficient to ramp up. Production is there but storage is not. It will be interesting to watch. I believe I know which UTEs will do it right.
Now I'll try to control myself and not hijack this into a utility thread.