I guess Wall Street Valued the railroad at more that 405 Million. . .but All I know is if they sell an asset, and pay down debt, it is good for the company. . .did the railroad ever make any money???. . .Yes, they may have to write down the value of the asset, but all is well that ends well. . .I LOVE those dividends. at Bush's 15% tax!!!
I agree with you. I was a hold posiition but today was a great opportunity to pick up shares below what I think is the proper support level. Fifty percent of the drop today was normal to just about every other utility. I expect the stock will recover after the initial reaction to the rise in the 10 year note today. I am inclined to think March 3rd may be more reassuring than disruptive but then my record for reading tea leaves has never been all thank good. Good luck with your positions.
I disagree with the sale...the price isn't all that is important; notice that the transaction will impact earnings this year and next...that seems like one hell of a concession to make particularly with investment bankers advice selling to other investment bankers. I smell a rat...is McGehee sane?
reigned today at the utility funds. This is a perfect example of illogical market wisdom. It took most of the day for the stock price to turn. In three months, I'll bet we're way above my additions at $43.70 today. I'm with ya'll recognizing the nice opportunities at the 15% dividend taxation rate.
A few hundred million in hurricane losses, 75 million in rail losses and probably more to come in reserves for employee downsizing. Add to that the news today that inflation is picking up and and a bad day for utilities becomes a disaster for PGN. Just hope the dividend can be maintained. FPL has already increased rates in Florida to cover their hurricane losses. PGN isn't increasing rates until 2006. Anyone know why?