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Great Plains Energy Incorporated Message Board

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  • urstuck2000 urstuck2000 Mar 22, 2008 1:50 PM Flag

    6.8%

    Can any one explain why GXP should not be selling for $30.00?

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    • Too much debt and challeneges they will have once the Aquila merger is approved. Aquila's infrastructure is average at best and Great Plains will have to invest a lot of money into their system to get it up to the standards of KCPL's.

    • GXP is faced with substantial cost overruns for the Iatan coal plant project, and they are playing games with the regulators about that because they want the Aquila acquisiton to go thru. GXP is going to make too many rate concessions to acquire Aquila. The sell off of SEL removes the only non-regulated profit maker from their asset base. GXP has made concessions to build wind generation, and that is not economically sound as an investment.
      The divy might be sound for a year or so, but it does look like a lock going forward at least at the present level. Regulatory environment in MO is poor for all IOU's. Environmental cost loom large to keep old coal genertors going. Interest rates have fallen and even with that the share price has fallen. As you know this is the converse of historical price trends tied to interest rate changes. Very bad signal.

 
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27.20-0.69(-2.47%)Aug 26 4:02 PMEDT