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Electrifying Stocks and Bright Ideas - Utilities on a 52-Week Low

October 05, 2013 | About:
Sally Jones

Sally Jones

49 followers
After thousands of attempts, prolific inventor Thomas Edison made his first public demonstration of the incandescent light bulb in 1879. He is quoted as saying, “We will make electricity so cheap that only the rich will burn candles.” Edison’s company, Edison Electric Light Company, was formed in 1878, with a financial boost from the investor gurus of his century, including J.P. Morgan and the Vanderbilts.

Fast forward 135 years to today, where the GuruFocus special feature 52-week low screener reveals regulated utility sector companies on a 52-week low. Note that Mario Gabelli has made remarkable gains with El Paso Electric Company (EE).



Utilities – Regulated

This sector has 36 stocks out of 155 at a 52-week low. The low ratio is 0.23.



Highlight: Edison International (EIX)

The EIX share price is currently $46.35 or 14.5% off the 52-week high of $54.19. Its yield is 2.90%.

Down 2% over 12 months, Edison International has a market cap of $15.1 billion and is traded at a P/B of 1.60.

Incorporated in 1987, Edison International is the parent holding company of Southern California Edison Company, a California public utility corporation, and Edison Mission Group Inc., the holding company of Edison International's nonutility power generation and financial services.

In the company’s year-to-date earnings summary, Edison International reported basic earnings of $0.54 per share for the period ending June 30, 2013. Earnings are up from $0.51 per share for the same six-month period in 2012.

Guru Action: Eight gurus currently hold EIX shares and there is insider trading.

As of June 30, 2013, Jean-Marie Eveillard is the top Guru stakeholder, holding 3,548,233 shares, after increasing his position by 75.27%. His shares represent 1.09% of shares outstanding. As of the second quarter, Eveillard bought 1,523,808 shares at an average price of $49.37 for a loss of 6.1%. In four quarters of holding, he has lost 1% on 4,728,454 shares bought at an average price of $46.72. He has lost 4% on 1,180,221 shares sold at an average price of $48.06 per share.

Tracking share price, revenue and net income:

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Highlight: El Paso Electric Company (EE)

The EE share price is currently $32.89 or 15.9% off the 52-week high of $39.12. Its yield is 3.10%.

Down 4% over 12 months, El Paso Electric Company has a market cap of $1.32 billion and is traded at a P/E of 14.20.

Incorporated in 1901, El Paso Electric Company is a public utility engaged in the generation, transmission and distribution of electricity in an area of approximately 10,000 square miles in west Texas and southern New Mexico. The company serves approximately 380,000 residential, commercial, industrial, public authority and wholesale customers.

El Paso Electric Company reported financial results for the second quarter of 2013, with a net income of $29.2 million, down from $30.9 million in the same quarter a year ago. Earnings per basic share for the quarter are $0.73, down from $0.77 for the same quarter in 2012. Year-to-date, the company reported $36.8 million for net income, up from the same period a year ago, at $34.2 million.

Guru Action: Three gurus currently hold EE shares and there is insider trading.

As of June 30, 2013, Mario Gabelli is the top Guru stakeholder, holding 1,862,334 shares, after reducing his position by 1.14%. His shares represent 4.63% of shares outstanding. As of the second quarter, Gabelli sold 21,400 shares at an average price of $35.80 for a loss of 8.1%.

His remarkable five-year history shows a gain of 76% on 1,441,210 shares bought at an average price of $18.64 per share. He has gained 51% on 2,059,706 shares sold at an average price of $21.83 per share.

Check out Gabelli’s holding history:

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Tracking share price, revenue and net income:

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Highlight: Integrys Energy Group Inc. (TEG)

The TEG share price is currently $55.34 or 13% off the 52-week high of $63.58. Its yield is 4.90%.

Up 0% over 12 months, Integrys Energy Group Inc. has a market cap of $4.4 billion and is traded at a P/E of 13.50.

Incorporated in 1993, Integrys Energy Group Inc. is an energy holding company with regulated natural gas and electric utility operations and nonregulated energy operations.

Integrys Energy Group Inc. reported financial results for the second quarter of 2013, with adjusted earnings for the quarter ended June 30, 2013, at $35.7 million, up from $21.7 million in the same quarter a year ago. GAAP earnings for the second quarter were reported as ($5.4 million) compared to $48.8 million in the same quarter of 2012. The company’s GAAP diluted earnings per share were reported at ($0.07) for the second quarter of 2013, compared to $0.62 in the same quarter of 2012.

Guru Action: Three gurus currently hold TEG shares and there is insider trading.

As of June 30, 2013, Robert Bruce is the top Guru stakeholder, holding 36,094 shares, after decreasing his position by 2.7%. His shares represent 0.05% of shares outstanding. As of the second quarter, he sold 1,000 shares at an average price of $59.24 for a loss of 6.6%.

He has gained 57% on 31,006 shares bought at an average price of $35.22. He has also gained 5% on 6,500 shares sold at an average price of $52.54 per share.

Tracking share price, revenue and net income:

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.5/5 (4 votes)

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