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Tag Archives: utilities

December 2006 Issue

Gridlock! Whether you’re delighted or dismayed by the results of the midterm election, I’ve got encouraging news for you—a divided government in Washington isn’t such a bad thing for your investments. This month, I’ll show you how you can take advantage of the new paths to profit that the election has opened up. In fact, I expect gains of 40%-60% in the next two years for my top picks. December also marks the fourth anniversary of our Incredible Dividend Machine. This nifty portfolio has beaten the overall stock market by such a huge margin it’s almost amusing. In our latest lineup, I’m swapping two of the members of the Machine with new names that I’m confident will keep the streak going. Finally, the holiday season is the perfect time to do some housecleaning, and if you’re sitting on a mutual fund that has outlived its usefulness, raise a glass of holiday cheer and toast it good-bye. Then replace it with one of my four best funds for your specific needs.

Warren Goes Electric

What’s he trying to tell us? On Tuesday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A or B) announced it will buy PacifiCorp, an electric utility serving six western states, for $5.1 billion in cash and $4.3 billion of assumed debt and preferred stock.

Takeover Beat Goes On

Wall Street is healthier than it may look on the surface. One sign is the continuing drumbeat of takeover bids. In recent weeks, we’ve had SBC Communications go after AT&T, while Verizon and Qwest have battled it out over MCI. Kirk Kerkorian, for reasons I still can’t quite fathom, last week made a tender offer for $868 million worth of General Motors shares.

More Cash for TECO

After the close yesterday, TECO Energy (NYSE: TE) announced it has received $33 million of cash from the sale of its power-generating assets in the Czech Republic. This is another small milestone in the Florida utility’s efforts to shore up its finances by raising cash and cutting capital expenditures. Apparently, TE has several more such transactions in the works.