Natural gas (distribution)
Article Abstract:
Investment in gas transmission industry stocks is still something of an enigma as deregulation, the rise of many new local distribution companies, mergers and acquisitions by large gas utilities, limited profits, and the replacement of long-term interstate contracts with utilities by 2-3 year local contracts create questions. Conservative investors should retain stocks in some of the better gas transmission companies, especially those involved in mergers, as they will have steady, if not spectacular, earnings and little price volatility.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
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Natural gas (distribution)
Article Abstract:
New regulatory policies, along with competition from pipelines and alternate energy sources, are forcing gas distributors to adopt new business methods. In 1996, local gas distributors may market gas beyond their natural markets, and free market competition controls prices and profits. The better gas distribution stocks are defensive in nature, with slow dividend growth from unsure earnings, and they face the risk of rising interest rates.
Publication Name: The Value Line Investment Survey (Part 3 - Ratings & Reports)
Subject: Business, general
ISSN: 0042-2401
Year: 1996
User Contributions:
Comment about this article or add new information about this topic: