03-14-2015, 08:58 AM
Finviz has stats similar to rapidacid and a P/E of around 15. Lewys, is it trading on the LSE with different stats? I'm guessing not because of your concern about the exchange rate.
As to the company itself, a big part of its US operations is in upstate NY. NY has a very lousy regulatory environment and the economy is very weak except in isolated spots. In NY, the rates are among the highest in the US so you have consumer pushback on the regulators also. Rhode Island also has high rates but the regulatory environment is a little better. Not sure about the Massachusetts portion of the business but Eversource Energy (formerly Northeast Utilities) seems to be able to grow well despite the costs of doing business in New England.
I'm not sure how well the merchant power business is in the UK but it's a pretty volatile market here in the US. I've never looked at the business in the UK division.
Right now, the utilities in the US are at the high end of fair value if not overvalued at best. I would at least wait for them to drop further before making any major commitments to the sector -- especially with the exchange rates as they are.
As to the company itself, a big part of its US operations is in upstate NY. NY has a very lousy regulatory environment and the economy is very weak except in isolated spots. In NY, the rates are among the highest in the US so you have consumer pushback on the regulators also. Rhode Island also has high rates but the regulatory environment is a little better. Not sure about the Massachusetts portion of the business but Eversource Energy (formerly Northeast Utilities) seems to be able to grow well despite the costs of doing business in New England.
I'm not sure how well the merchant power business is in the UK but it's a pretty volatile market here in the US. I've never looked at the business in the UK division.
Right now, the utilities in the US are at the high end of fair value if not overvalued at best. I would at least wait for them to drop further before making any major commitments to the sector -- especially with the exchange rates as they are.
=====
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan