you have a very good understanding of the company. I've had exposure to UGI for more than 20 years and your characterization has been applicable to the company during the entire period. Also, the sell on year end up-tick and buy on mid-year reversal has been a strategy I've used for a long time. Good advice!
The absolute best upside for the stock is a potential buyout but don't count these guys out as making a move to buy something along the way.
Was a nice place to work years ago so I hope you find it the same today. LOL...........ts&ks
I am a relatively new employee at UGI in the gas division. UGI is a strong company, but has the potential of a buyout from a larger energy company. Don't put too much merit in end of year stock prices. Portfolio and mutual fund managers tend to buy up utility stock at the end of the year with cash reserves to reduce the amount of cash on the balance sheets. That's what caused the spike in late 1997 and early 1998. Look for the stock to keep climbing slowly until the new year. Sell and rebuy when it falls again. As far as the impact of electric deregulation, UGI is not taking a very aggressive approach to marketing electric energy. Quite frankly, the electric division is more of a ball and chain on the company than a margin builder. The plant is old, and the customer base is extremely small. The gas division management is very strong, but hardly progressive. Don't look for UGI to make any alarming decisions anytime soon.
I am in the process of purchasing my first home. I have always been happy with my energy supplier, however as a UGI shareholder I am considering changing when I move. I will look into their reputation as an electric utility and compare prices, but otherwise have no other reason to switch.
As far as an investment choice I would GUESS that this should be a great opportunity for UGI to expand their business. Keep in mind that many other states are also looking into electricity deregulation. Maybe UGI should be thinking merger with large electric utility from elsewhere to be in better position to grow in the country - maybe an east coast supplier.
I too would like to get others' opinions on this subject.