Great Plains Energy, Inc. (NYSE:GXP)

belmer2 (< 20) Submitted: 7/11/2007 1:34:59 PM : Start Price: $22.21 GXP Score: -1.71

undervalued utility

motomomkc (20.39) Submitted: 6/25/2007 6:10:18 PM : Start Price: $22.40 GXP Score: -3.40

Buying Aquila.

One completed windfarm, 4 more scheduled within 2 years. Scheduled new power plant (Coal)

DocSawyer (< 20) Submitted: 6/16/2007 2:27:40 PM : Start Price: $22.79 GXP Score: -3.03

5/28/07 Morningstar raised to 5 star rating saying Wall Street is missing a great opportunity. They say GXP's rate base is on pace to exceed load growth by 2 to one which should mean solid earnings expansion.

Dividend yield of 5.7% !

2/06/07 Insiders bought (mostly by direct acquisition) 321000 shares at $31.49 to $31.96 /share. Doing the math = $10.11M insider action !

PE of 15.7 PEG of 3.45 !

I'm long on GXP for the long term.

HARTLESS63 (87.09) Submitted: 6/2/2007 12:25:09 AM : Start Price: $23.84 GXP Score: -7.19

M-star

Atagrob (64.46) Submitted: 5/27/2007 2:53:32 PM : Start Price: $23.71 GXP Score: -7.71

Fat dividen, under valued.

anylawn (36.90) Submitted: 3/9/2007 7:06:44 PM : Start Price: $23.37 GXP Score: -14.41

Potential energy takeover target

DanskViking (< 20) Submitted: 12/13/2006 7:15:31 PM : Start Price: $24.16 GXP Score: -16.18

GXP is much maligned. Great earnings and dividend performer.

NtscrbEnergy (80.20) Submitted: 12/13/2006 8:21:20 AM : Start Price: $24.05 GXP Score: +15.53

Great Plains Energy Inc. (GXP) is the holding company for two main business units comprising Kansas City Power & Light (KCP&L) and Strategic Energy (SE). While SE is a competitive electricity retailer, KCPL is a regulated electric utility, which provides power generation, transmission and distribution services.

In the recent past,the company has recorded a dividend yield of 5.2%, which is higher than its peers who stand at approximately 3.2%. This move has helped the company become attractive to investors. Conversely, KCP&L operates in the regulatory environment and the price charged is regulated. Further, the company has planned approximately $1.2 billion worth of capital expenditure through 2010. In order to recover its capital expenditure, the company needs to file “rate cases”, which would crop up every year or for most of the years. However, if the company loses these cases it would end up in deep crisis limiting its capital spending and posing as a bottleneck in its growth path.

Electricity rates in GXP’s service territory are 20% below the national average due to low cost power sources such as coal. However, the recent rise in coal prices will have ill affects on the company’s future earnings. On the other hand, SE operates in a highly competitive business and is expanding its customer base by pursuing smaller commercial customers as well as larger industrial players. This strategy increases its counterparty risk due to dealing with huge number of players. Considering the various risks associated with the company along with a few positives, it is believed that the stock will lose steam going forward.