Shares in Scottish Power and Endesa Purchased
Scottish Power plc (SPI) is an electrical generation and distribution company primarily focused in the UK. They have two subsidiaries that are based in the US, PacificCorp and PPM Energy. They are currently in the process of trying to sell PacificCorp to Berkshire Hathaway.
PPM Energy is a company with extensive wind energy development and generation. Scottish Power also has extensive wind farms in Scotland and Europe. They are also developing off-shore wind power of the Welsh coast.
This stock has been moving strong recently and it looks like it is building a base at the $40 level. I purchased a 1/3 stake of this stock for the mutual fund at a price of $27.00. I will purchase additional thirds on any pull backs to lower my cost basis. This stock also pays a 4% dividend.
ENDESA (ELE) generates and distributes energy in Spain, Italy, France, and Portugal, and Latin America. They have extensive wind farms in Spain. They are currently trying to fight a hostile bid by one of its competitors Gas Energy. The stock currently pays a 3.5% dividend. Endesa has forumulated a plan to increase the dividend payouts to 7 Billion Euros over the next 5 years to combat the hostile bid. They will accomplish this by disposing of non-strategic assets to generate the future dividend payouts. Full details about their plans can be found on the Endesa website [ pdf ].
The stock has been moving strong over the last month and I have been waiting for a pull back to enter the stock. That pull back has never materialized and I wanted to step into this position before it gets away from me. I'm purchasing a 1/3 stake in the mutual fund at $40.91. I will purchase remaining thirds on any pullbacks from here.
With these purchases I'm now at a 50% invested position in the mutual fund. My plans are to still try to maintain a conservative stock entry strategy as I get closer to 100% invested in the mutual fund. I'm already at an 80% invested amount in my personal portfolio. I will be selling some of my stake in PBW to gain cash as I find new names I want to own in my personal portfolio.