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Enron Mail |
-----Original Message----- From: "Colangelo, Maria" <Maria.Colangelo@ubsw.com<@ENRON On Behalf Of "Abramson, Barry" <Barry.Abramson@ubsw.com< Sent: Monday, September 24, 2001 7:54 AM To: undisclosed-recipients:;@ENRON Subject: Electric Utilities - Weekly Update KEY POINTS This is our first Weekly Update since the terrorist attacks upon the United States last week. We wish to express our sympathy for all of the victims and their families. We also want to express our appreciation for the heroic efforts of all of the rescue workers who put themselves in danger in order to help others. When the stock markets reopened this week, the utility stocks, in a broad sense, resumed their previous pattern of trading. Since August, the stocks of companies that have more of the characteristics of traditional utilities have outperformed while the higher-growth electricity companies that are less regulated have been laggards. These trends continued last week. Before September 11, the IPP stocks and the utilities with merchant generation, were losing value because of fundamental concerns about lower wholesale power prices. Also before September 11, the higher yielding, more traditional utilities were gaining in value due to their defensive characteristics that were favored due to the slowing U.S. economy. After September 11, it appears that investors driven by fear of the unknown and by greater concerns about a recession in the U.S., have looked for safe havens in the higher yielding utility stocks. Although higher yields are good for a portfolio in a period of market uncertainty, we think that the best values in the electric group are in what we consider to be the over-sold merchant generating stocks, such as PPL Corp. (PPL-$37.00, rated Strong Buy)[2], Duke Energy (DUK-$37.17, rated Strong Buy)[2] and NRG Energy (NRG-$15.50, rated Strong Buy). We also favor a few of the seemingly over-sold diversified energy/convergence stocks, such as Dominion Resources (D-$58.98, rated Strong Buy)[2] and NiSource (NI-$23.40, rated Strong Buy). <<WKLY10924.doc<< <<WKLY10924.pdf<< - WKLY10924.doc - WKLY10924.pdf Visit our website at http://www.ubswarburg.com This message contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. E-mail transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this message which arise as a result of e-mail transmission. If verification is required please request a hard-copy version. This message is provided for informational purposes and should not be construed as a solicitation or offer to buy or sell any securities or related financial instruments.
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