We like the shares of Unitil at it's current price for the following reasons: The Northeastern U.S. has been a hotbed of utility merger activity with the likes of Central Vermont Public and CH Energy being acquired recently. We like Unitil's 5.03% yield which compares favorably with the higher-yielding utilities, but without the added risk. Third, while virtually all of Unitil's business is regulated, we have been favoring highly regulated utilities since before the fall of Enron. Unitil also has no nuclear facilities, which is another of our investment criterion. Recently Unitil's rate increase requests were granted, as expected. When doing your own due diligence, please note that the sharp decrease in UTL price was due to a secondary issue coming to market during mid-May. In summary, the company, while only posting flat revenues and a higher than average P.E. is poised to look stronger after the rate increases take effect -- also the mild spring weather during 2012 surely will not be repeated anytime soon. In summary, this is an accumulate-until-acquisition investment.
Disclosure: I am long UTL.