PUHCA is going down with the current Energy Bill.
Yhis means that we can go back to the 20's where monopolies can, like Enron use cash cows like EDE to fund non utility business like gambling casino's et al.
Now a cash cow like EDE is going to be very attractive for the scam artists. Why give the dividends away when crooked managements can use them to fund their high risk-high pay-off schemes. Remember the S%L scams? Silverado and other that made the Bush Family rich?
Ok here we go again so expect a bid on EDE with a few golden parachutes for the management. Likely the bidders will try to pay off with paper rather than cash so beware.
The real loosers will be the rate payers who will be expected to pay fro the managerial exhuberance.
I have a few other utilities like AEP, D, AEE, SWX, EAS and even some AVA but not for too long if I get a good offer. Tried to dump the last of my EDE today but it didn't make my price.
Be well and look out this is getting trecherous.
I too have significant doubts in investment overseas. I have been fortunate and enjoyed success with overseas Royal Dutch (RD) for many years, but your right to think if a "respected" US company would lie then what would ever prevent a South American company. I think in your case I would settle for a lower dividend and a US company.
I have been frustrated watching EDE hit new highs while I sit on the sidelines. Sometimes that "buy low, sell high" thing is hard to do. The market has been much stronger then I expected the past few days.
Looking forward to LSU opener.
It is really nice to hear sane discourse instead of profanity. This is info on SID. I have to drive into N.O. to put some money in my account if I want to buy anything. Meanwhile I think it has gone up. lol I went to LSU also. Geaux Tigers!
My concern about this stock is that the company is in Brazil and I am sure their financial reporting could be Enron, Tyco or Worldcom style. So I need to learn more. The 2.07 dividend is the reason I am interested. I learned of it from the Times Picayune Sunday edition a few weeks ago.
Quote Profile Charts Insider trading
Price $16.02 Change $0.75 %Change 4.91%
Time Frame: 1dy 5dy 1mo 3mo 1yr 5yr
Open: 15.28 Volume: 780,400 Dividend: 2.97
High: 16.10 Yield: n/a Shares Out: 272.1M
Low: 15.27 P/E Ratio: 5.30 Market Cap: 4.4B
Bid: n/a EPS: 3.02 52wk High: 26.85
Ask: n/a Ex Dividend Date: 5/2/2005 52wk Low: 12.15
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I am a novice investor and only have 3 stocks at the moment, EDE, SO, and Great Plaines. Do you think I should sell EDE now? I would not lose any money if I did, but not make a whole lot either as I have not held it very long.
My first advice is:
DO NOT listen to people on investment boards.
Take everything said with a grain of salt. Posters have their own agenda here.
Do your own research. If someone posts something, check it out first before acting. There are a lot of scumbags on the boards.
My second advice is concerning your question.
EDE is a good company with a 5% dividend. If you do the DRIP thing, you can purchase the stock at a 3% discount. You do the math. This is a buy and hold stock, with a low float and sometimes wild fluctuations, although Pete says it has low volatility. He is wrong.
A small utility such as this is highly dependent on local politics. Rate cases. They just won some good rate increases recently.
Thats the bread and butter for these guys.
What they do with the money is what you need to watch.
Forget about the PUH act. It will have No effect on ANY utility but good.
I am also in SO, D, and this.
I am selling but then I have held this stock for some time and have a low - less than 20 -aquisition price.. The dividend has been good and the capital gains a sweetenerat the current level.
When the PUHCA goes down the drain - in effect - there could be a bidding war for these small utilities who have very good cash flow. It is the cash flow that the new buyers will want as they can buy this cheap and cut dividends - if they gain control - and get a lot of new play money to buy casino's and auto rental companies. If these speculative play/excursions pay off they will collect heavy bonuses for their wisdom. Iff they do not which I deem more likely they will beg their PUC to bail out the companies at the ratepayer's expense.
Al inn all not good for stockholder or ratepayer hence I am bailing pout of most of my utilities as the prices rise in anticipation of these Enron like republican scams.
There are a couple who have my faith and are too big for the speculators to buy and drain. Dominion is one, AEP is another who is in " recovery " from some bad choices and EAS may be a survivor. The only one I have seen who has done this diversification wisely is MDU but then they too try to keep it pretty simple.
Their only madness it would seem has been to assure good vacations for their winter months by investments (small) in Trinadad and Hawaii. This is OK as they are in North Dakota and do run a sensible shop in pipelines and rock and gravel pits.
I have been hoping to buy EDE but with the stock at a 52 week high I am reluctant to make the purchase.
To answer your question, obviously "sell high, buy low" is a well know cliche and you certainly would be selling at a high. But on the other hand this stock is not known for wide price fluctuations and many people own it for its dividend and price stability.
Tough call for you but I think it is a good "hold" stock.
Regards from Louisiana