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Bruce7b

Bruce7b
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  • Black Hills: Buy This Small-Cap Utility For Its Large Gas Potential [View article]
    I always read SA articles dealing with utilities, hoping to find a second buy to go with my NextEra(nee). I especially like artilces that provide both the pros and cons of an investment. Your article on Black Hills seems only to address what you think of as positives. I will provide a few negatives. (1) earnings per share have gone nowhere in 14 years--in 2001 they were $3.42, in 2007 they were $2.68 and the projected 2013 earnings per share are about $2.25. (2) Stock price has a similar history with the stock peaking out in 2001 at $58. And (3) 38% of electrical generation is (was) from coal and the EPA is trying its best to kill coal. Most of the above numbers are from Value Line and might be slightly out of date. So the investment return for this stock has, at best, been its dividend, and if EPA is successful its future doesn't look promising. I will have to keep on looking for another good utility.
    Nov 4 12:39 PM | 5 Likes Like |Link to Comment
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