The Internet Analyst News - Utilities-Getting a Kick out of Tech.
NEW YORK--(BUSINESS WIRE)--May 3, 2000
Utility stocks may not seem to have the allure of the Internets, but look again. Many of these once-stodgy companies have made strategic investments in e-commerce and telecom, and now offer some hidden values.
To find the winners in this sector, Mr. Konolige suggests that investors look for "no regrets" investments --- stocks trading close to their depressed, underlying utility values that also have e-lectricity kickers. Companies singled out by Morgan Stanley include DQE (NYSE NYSE
See: New York Stock Exchange :DQE), Puget Sound Energy Puget Sound Energy (PSE) is an energy company providing electrical power and natural gas in the Puget Sound region of the northwest United States. It serves electrical power to over 1 million customers in Island, Jefferson, King, Kitsap, Kittitas, Pierce, Skagit, Thurston, and (NYSE:PSD), and Conectiv (NYSE:CIV JUS AQUAEDUCTUS, CIV. law. The name of a servitude which Lives to the owner of land the right to bring down water through or from the land of another, either from its source or from any other place.
PUGET SOUND ENERGY, an electric and gas utility, offers investors a technology play through ConneXt, a customer-relationship management software and billing services provider. ConneXt's new billing products will be jointly marketed by some well-known technology names, including EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. (NYSE:EDS), IBM (NYSE:IBM), and Oracle (Nasdaq:ORCL ORCL Oracle (stock symbol) ). Conectiv owns Conectiv Communications, a competitive local exchange carrier, and has a 67% stake in EnerTech Capital, a venture capital fund that invests in energy e-commerce. General partners in the fund include Safeguard Scientifics (NYSE:SFE See Sydney Futures Exchange. ) and TL Ventures. The fund's investments include Internet Capital Group (Nasdaq:ICGE), PAC-West Telecomm (Nasdaq:PACW PACW Pacific West ), and essential.com, a Web provider of basic utilities and household services to consumers and small businesses.
Natural gas utility company Enron (NYSE:ENE) owns a wholesale energy trading and exchange business through Enron Online. Even Williams (NYSE:WMB), an energy-related holding company, is starting to benefit from its 85%-owned subsidiary, Williams Communications Group (NYSE:WCG), which went public in October 1999.
To find out more about utilities , read the article in Multex.com's The Internet Analyst(sm), http://www.theinternetanalyst.com/min-tia/individual/000427sections/connections.html
Companies profiled: DQE (NYSE:DQE) http://www.multexinvestor.com/af001215/tickersearch.asp?Ticker=dqe
Puget Sound Energy (NYSE:PSD) http://www.multexinvestor.com/af001215/tickersearch.asp?Ticker=psd
Conectiv (NYSE:CIV) http://www.multexinvestor.com/af001215/tickersearch.asp?Ticker=civ