On 2010-05-05, John R. Carroll wrote:
Ignoramus32324 wrote:
On 2010-05-05, F George McDuffee
wrote:

Might be a good play at the right price, however there is

5 times annual earnings, 9-10% dividend yield, 31% return on equity,
dominant market position. The minus is 4:1 leverage, but many
utilities use leverage.

The minus is their P/E ratio Ig. For one thing, it's way too low even for a
utility. Their last dividend was EU .5 per share.
Something is goofy about these numbers. The question, of course, is what
exactly that is. Infrastructure?

I think that it is like BellSouth, kind of.

I'm just seeing the boogie man everywhere these days.

Not a bad way as a start to all analysis.

My feeling isn't so much driven by debt as it is that by "saving" the
financial sector we have prevented the collapse of 1929 but what we end up
with might not be so good either. Greater income disparity appears to be the
future and that isn't good for anyone in the long run.

You are right. It is not even good on the correct side of the income
divide. (where one would hope to be) I would prefer to be well off,
surrounded by other well off people, than to be well off in a sea of
poverty, confusion and despair.

The income disparity, however, is driven by economic factors from
which there is no escape. These factors are computers and automation.
The phenomenon is called variously, for example "loss of middle class
jobs". (or midmarket)

This article is frightening:

http://www.ncbi.nlm.nih.gov/bookshel...013e48ddd00012

It identifies the "competencies" related to complex problem solving,
which will continue to be rewarded, with the implication that there
will be less and less space for people not possessing them.

i