WHAT?? IS this YUTZ confused or what??!!
THIS FIRST HE
SAN DIEGO--(BUSINESS WIRE)--May 4, 1998--Utility
stocks are no longer the cash cows they once were, and
yield-seeking investors had better look to other sectors of the
market to satisfy their needs, a professional money
manager warned Monday.
Jack K. Heilbron, chief
investment officer of Centurion Counsel Inc. in Rancho
Bernardo, Calif., said in a letter to clients that ``the
days when an investor could buy a utility and look
forward to steadily increasing dividends are over.''
Heilbron predicted that ``most utilities are going to cut
their dividends because of intense competitive
Heilbron said the deregulation of the U.S. power industry
has created some good investment opportunities,
including Duke Energy Corp. [NYSE:DUK - news] and Enron
Corp [NYSE:ENE - news]. He characterized these as
``the prototypical growth stocks of the future,'' but
noted that both pay dividends of less than 4 percent.
Utility stocks are going to behave much like telephone
company stocks after their industry was deregulated,
Heilbron said. Two decades ago, the yield on telephone
stocks was above average in the market, but today the
yield is as low as 1 1/2 percent, he pointed out.
IS THIS MAN DOUBBLE TALKING OR WHAT ??? SOUNDS like
hes covering his ass both ways.
I say, 4%??
WHAT are you getting from your bank????
DUK has ALLWAYS paid a fair dividend, plus any SMART
invester KNOWS that when the price goes down you get MORE
when you dividend RE-INVEST. So your 4% is
actually MORE in the end. AS for behaving like a phone
WOW , I wish it would !!! HAS any one been following
the activity of LUCENT.
HEY HEILBRON, UNLESS
YOU can give diffinative investment info, stay home
and play video games, maybe your good at that!!
DUK is famous for 10% corrections and then moving
higher.Check the charts.Plus overall market has been very
choppy for last 30 days.Concerns over rates and earnings
growth may be legitimate.If you own DUK ,just
remember,this is an investment not a Vegas crap shoot.For all
the right reasons this is a great investment.
it sure is nice to know that someone else
understands something besides the bottom line. duk is not the
only one, it"s scarey to think most are reading the
same book. we might make a lot of money at first, but
i"ll settle for some consistancy over the long haul.i
might be wrong but i have always heard from the older
generation that was one of the main reasons they bought
utility stocks in the first place, "safety". if they
wanted speculation they bought an oilwell. i"ll admit
that i"m scared of deregulation for more than one
reson, think for just one min. with no thought of your
pocketbook, try living your day to day life with no
electicity. unless you"re really laid-back, after 4 or 5
hours it"s a real pain, after 4 or 5 days it"s a
nightmare. it's almost impossible to do any kind of work
without it. so if the whole country goes deregulation,
what happens WHEN it doesn"t work?
.........but fell by 8 percentage points from
year before. Not a good trend. Recently tried to get
service connected to a new address. Holy cow! What a
trip! Talk about a fiasco! Brain drain starting to take
Personally, I think he's right. The old regulated
yield driven model is dying. The best utilities are the
ones that will see dramatic growth in a de-regulated
environment. That's where he puts DUK.
isn't a phone company - try BEL or FON.
How quickly will the "new" model become valid?
Already, several utilities have scaled back plans to enter
in the mass market to provide power in places far
afield from home. I would think that there are concerns
with how quickly people will be willing to jump ship.
Look at the phone industry was the comment. From a use
perspective, competition for local service has yet to enter my
area so that the analogy has only limited validity.
Most of the changes I see are mobile networks
penetrating other areas. This because they require very
little infrastructure. In the future the model will be
different, my question is when does the future get here?