Allegheny Energy, Inc. (NYSE:AYE)

merger with first energy will generate scale economies. good management in paul evanson will help return values to 2006 levels+

Operating Margins are stable. Pays a dividend. This utility company is at low end of its price range.

Will pick up as sector equity price recovery kicks in
Undervalued v. FE takeover offer
Great value
Bought at $23.01 on 4/8/2010

2,357,600 owned
- Q409 13F - Soros Fund Management LLC

FE buying AYE today. Helloooooo profits.

Aye!

It is so;id utility company with genaration output

Over valued unless oil goes to 140 a barrel again.

Mmm...energy...

allowed to raise elec rates over next 3 years

Locked in market rate increases will increase earnings, $1B transmission line ROR is 13% (subtract cost to borrow), and coal contracts are below market.

Company uses relatively inexpensive domestic coal to produce electricity in a part of the U.S. where the economy is still fairly strong.

People got to have juice...

This stock has a good management team and will continue to grow value for its owners.

RSI PASSING 30
STOCH CONFIRM
HIGH VOLUME
GOOD CANDLE
SHORT DWN TREND
ALL = JUMP !!!

I expect the P/E to return to historical levels (11-14) from its current 20

Three major investment banks recently said they believe the US government will cap CO2 emissions from power plants in the next few years. This forecast about what the government will do years from now has an immediate impact on the present day - electric utilities borrow money from these same banks in order to build new power plants, and the banks, worried the utilities won't be able to pay back the loans if emissions caps are put in place, are requiring borrowers to demonstrate they will be able to make money under a system of CO2 caps - or face higher borrowing costs if they cannot do so.

Of all the electric utilities, Allegheny energy (NYSE:AYE) has the most to lose. The company has steadfastly dismissed the threat posed by alternative energy, and uses less nuclear energy (zero percent) than any other electric utility. Eighty percent of its power still comes from coal.

Appreciable market value growth over the short and medium-range future. The company is steadily expanding its market to serve an increasing number of customers. Energy is the name of the game (on the customer's as well as on the producer's side).

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