Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Investors' Recent Flight To Safety Is Making Laclede Group's Shares Very Overvalued

Natural gas utility Laclede Group (NYSE:LG) reported earnings for its first fiscal quarter of the year ending December 31, 2015, last week that missed on both lines as its revenue dived. Unexpectedly, warm weather in its service areas caused natural gas demand to fall sharply. Its EPS miss was much narrower, however, as the impact of the poor revenue result was mostly offset by low expenses during the quarter. Last July, I highlighted the positive impacts that the company's acquisitions of other utilities in Missouri and Alabama would have on its earnings in FY 2016. I concluded that its shares were slightly overvalued at $53, however. Laclede's share price fell below $50 in early September, but has rebounded

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