Utilities sector

[EricL]

Here's a write-up I did on Dominion Energy (D), which I bought more of a few weeks ago.

Recent Buy: Dominion Energy

Enjoy!

[benjamen]

Has anyone else noticed that SCG's price has fallen off a cliff. There are been some very shady dealings going on...
https://seekingalpha.com/article/4104267...sure-scana

[EricL]

(10-05-2017, 09:55 AM)benjamen Wrote: Has anyone else noticed that SCG's price has fallen off a cliff.  There are been some very shady dealings going on...
https://seekingalpha.com/article/4104267...sure-scana

Yeah, it's been hit hard, perhaps justifiably so.

May be worth a speculative buy, but I don't know that I'd buy it for income at this point.

[EricL]

I posted an update last night on my utility sector watch list for anyone who may be interested.

https://dgiforthediy.com/watch-lists/uti...atch-list/

[fenders53]

(12-08-2019, 02:12 PM)EricL Wrote: I posted an update last night on my utility sector watch list for anyone who may be interested.

https://dgiforthediy.com/watch-lists/uti...atch-list/

I'll be on it like a duck on a June bug in a minute Eric.     I truly enjoy your Ute contributions to the DGI world.  You've put me on a few great Utes. I don't run out and buy everything you like, but I've noticed when I happen to agree with you it's been good for my account balance.  HATED the PE for a Ute but took a chance on NEE as an example.  If I'm ever in your hometown I owe you a Cracker Barrel lunch.  Maybe even one of your better restaurant holdings.     

I'll be back here with some Ute comments or questions after I check your update.

[fenders53]

Nice update. I have some reading to do. I am a few years from real retirement and would like to make UTEs a core sector. Perhaps as highs as 20% of total port but no way I can make that leap quickly after the strong run. I'm under 10% at the moment. I am thinking 5 core holdings, and a few small positions for entertainment. I'd appreciate your feedback on where I am at the moment.

Definite plans are to build my positions in these cores. NEE, AEP, XEL, and D, no particular order for now. I've owned XEL for about 25 years when they were still Northern State Power. Bought a fair amount when fools were acting like they were going BK. So they are going to stop needing electricity in Minneapolis next winter? I'm sure that sounds like a brag but it was the easiest decision I ever made on a stock in free fall.

I need a water UTE. Got a suggestion for a first position if I go slow? I don't even want to check the PE. Going to have to hold my nose and wade in slowly. I don't excited about a UTE yield under 3% so that's mostly a problem. I am amazed how long this UTE run has held up. Only recently losing a little steam.

I know you aren't an option guy, and generally buy smaller positions. I NEVER buy options because it's a sucker's bet. I do sell them for the exact same reason. I sell puts until I finally get forced long in my UTEs. That's a good way to enter but in a market like this you often just collect about 1% a month cash and try again next month. Lately I sell puts on PPL and EXC every month trying to enter at my price. EXC is one you might consider for your watch list. It's my local UTE along with Berkshire's Mid-American. EXC got in trouble in their IL market. IL is so dirty since forever. Retirements and this will pass. Fun fact, Illinois has had FOUR governors indicted in my lifetime. A couple serving prison time the past ten years. Thankfully EXC is not just about IL though.

[EricL]

Don't have time for a long response, but I'd take a good look at WEC for your 5th utility and AWK for your water utility. WTR is another to consider for water, it has also been a very good performer over the years. Both are quite overvalued, but you knew that already =).

[Otter]

I like CNP at the moment. Price is nice. Haven't added to my position in several years, but may add more soon.

[EricL]

(12-09-2019, 04:30 PM)Otter Wrote: I like CNP at the moment. Price is nice. Haven't added to my position in several years, but may add more soon.

I agree that it looks attractive. One of the few in the sector trading below my fair value target.

[fenders53]

(12-09-2019, 03:17 PM)EricL Wrote: Don't have time for a long response, but I'd take a good look at WEC for your 5th utility and AWK for your water utility. WTR is another to consider for water, it has also been a very good performer over the years. Both are quite overvalued, but you knew that already =).

WEC ran away from me.  I sold a few puts but had to stop chasing it.  It will come partway back to me eventually.  One things for sure and most of my UTE money will be in companies wise enough to realize they better be adding more renaewables and killing coal plants every year.  At some point I'm convinced they are going to be on the right side of the politics for many years.