In early 2003, Germany’s RWE paid a hefty premium for American Water Works. Five years later, new management took a $1 billion writeoff to unload the company, handing investors a chance to buy the country’s biggest water ute for 75 percent of book value and a yield two times pre-takeover levels. Read More

While the global economy weakens, energy prices will be pressured--and so will producers’ distributions. Last month, ARC Energy Trust rolled back its remaining “top up” distribution increase. Fellow Canadian trusts Enerplus Resources and Provident Energy Trust also cut, 19 percent and 25 percent, respectively. Read More

The financial crisis has choked off merger activity for many sectors. Ironically, it seems to be having the opposite impact for essential services companies, as acquirers look to lock in low prices for assets and boost scale to meet stiff capital market challenges. Read More

With global stock values roughly halved over the past 18 months, it’s the best time in years to buy great businesses. And the clear message from third quarter earnings season is UF Portfolio businesses are measuring up to the bear market’s stress tests. Read More

Elections are always critical for regulated industries. And the nationals held Nov. 4 are no different. For the first time since 1994, Democrats will control both the White House and Congress. Expectations are high for a sweep of new initiatives affecting utilities, from changes in taxation to energy and health care policy. Read More

The Democrats won another round of elections Nov. 4. My feature article highlights what we can expect in the next four years from Washington and the states, where the real action is for energy, communications and water utilities. Read More

There are some things we do know for certain about this market. First, stocks are cheaper on virtually any valuation measurement than they’ve been in six years. Commodity producers are back to prices last seen in the late 1990s, an historic nadir for natural resources of all stripes. Second, virtually every company that posted solid second quarter earnings wound up with strong third quarter numbers. Read More

To be sure, utility stocks have taken on water since early September, like everything else. The sector has posted strongly positive fourth quarter returns 33 times since 1969. But getting there this time will require a nearly 20 percent surge by Dec. 31, and time is growing short for such a move. On the other hand, at least through the third quarter earnings season, the sector is still weathering the worst US economic crisis in 80 years. Read More

The more data we see, the more obvious it is that the economy hit a brick wall in October. Today’s blockbuster number was retail sales, which plunged by the largest amount on record, 2.8 percent versus 2.65 percent in November 2001. But it’s just the latest in a steady string of lousy numbers, ranging from surging unemployment to weak manufacturing. Read More

Greetings from InterShow’s 2008 Washington, DC Money Show. This year’s event comes at a pivotal time in history for investors, with the global economy sliding and a presidential election only days behind us, as well as the globe in a full-scale effort to combat credit pressures that have literally frozen lending for several weeks. Read More