NEW YORK, NY, June 19, 2002 — Despite industry turmoil, investors are buying up certain kinds of utility stocks, but not the ones that have made headlines recently, a new report states.
“It is precisely because of the turmoil in the merchant energy sub-sector and the associated weakness in those stocks, that the market has shifted some of its interest to the stocks of companies with a more traditional, regulated business mix,” commented Kyle Rudden, President of R.J. Rudden Financial, LLC, the company that produced the report entitled “Energy Capital Markets.”
“As measured by the Rudden Strategic Position indices, the P/E ratios of competitive non-regulated companies are down an average 14% over the last quarter, while that of a group of more traditional utilities are up 15% during the same period.”
The report is part of R.J. Rudden’s effort to provide investors and the industry at large with truly independent research and analysis, born of the firm’s deep energy industry expertise. It focuses exclusively on energy and utility sector financial/capital markets and related issues.
Rudden’s findings are documented using a new industry measure developed by the firm called the Rudden Energy Index. A regular feature in the report, and updated monthly, this broad-based Index tracks more than 70 industry players, and is further segmented into five Strategic Position Indices based on each company’s strategic positioning within the energy industry: Regulated Local Utilities, Regulated Regional Utilities, Diversified-Regulated Bias, Diversified-Competitive Bias, and fully Competitive.
Also included in the issue is a discussion of one of the “hot” issues within the energy industry, impropriety in the energy merchant trading arena; utility stock performance and valuation; mergers and acquisitions (including noteworthy asset sales); securities underwritings (plus material stock buybacks and debt/preferred redemptions); and timely, relevant issues having a direct bearing on the energy capital markets.
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R.J. Rudden Financial, LLC, an affiliate of R.J. Rudden Associates, Inc., is headquartered at 45 Rockefeller Plaza in New York City. It has been established to provide independent financial research and analyses to the energy and utilities practices of investment and commercial banks, energy companies and energy investors. The services offered by R.J. Rudden Financial include industry/company analysis, energy securities analysis, transaction support, and advisory services. They complement the services that R.J. Rudden Associates presently offers in the areas of strategic planning, project and M&A due diligence, industry economic and financial research and analysis, project and enterprise evaluation, financial and technical support of merchant generation and transmission ventures, regulatory research, and risk assessment.