Shares in FPL and Calpine Purchased
This morning I purchased shares for the mutual fund in two large utility companies that both have extensive research and power generation via renewable energy.
FPL Group Inc (FPL) is an electric utility that is primarily based in the South East. This company owns Florida Power and Light and has been in much of the recent news due to hurricane Katrina. FPL also owns FPL Energy which is a division that provides wholesale electric power that is generated from Natural Gas, Wind, Solar, Hydro, and Nuclear. They currently produce more Wind generated power than any company in the US and they also own two of the largest solar fields in the world. This stock also pays a 3% dividend and I feel is one of the more conservative investments. I wanted to get some money into this name as soon as possible so I purchased shares in this company this morning for the mutual fund with an average purchase price of $45.98. I plan on averaging down my cost basis over time since it is at the high end of its trading range currently. I will be buying more once it comes back down to its 50 day moving average (currently at $43.)
Calpine Corp. (CPN) is the other utility that I started a position in today. This one is a more aggressive play, but has the potential to generate better results. Calpine supplies electricity from natural gas-fired and geothermal power plants to wholesale and industrial customers in North America. This company has had some serious financial difficulties in the past and is trying to right itself. This is a very speculative purchase and I did not commit very much money into it. I purchased this stock with an average entry price of $3.35 for the mutual fund only.
Other utility companies that I'm also looking at are IDAcorp (IDA) and Endesa SA (ELE). Both of these companies are very stable and also pay decent dividends. I will be adding these two stocks to the portfolio eventually, just not now.
IDAcorp is an Idaho power utility with electrical generation using Hydro, Natural Gas, and Coal. They also own IDATech which manufactures fuel cell solutions. I'm waiting on this one until the technical picture of the chart improves. I would be a buyer if we can either get a retest of the recent $29 support level or a break out to the upside above $33.
Endesa (ELE) is a Spanish electric utility with an extensive footprint in Europe and Latin America. They are also heavily involved in Wind power generation. They were recently part of some intense hostile takeover interest earlier this month and the stock has actually soared. I'm waiting to see if the stock can hold these new highs or come back to the mean before I purchase these shares.
DISCLAIMER: I am not a registered investment advisor. The information and trades that I provide here are for informational purposes only and are not a solicitation to buy or sell any of these securities. Investing involves substantial risk and you should evaluate your own risk levels before you make any investment. Past results are not an indication of future performance. Please take the time to read the full disclaimer here.