"The positive side to any correction is that it brings valuations down to earth for stocks you may have thought were out of your reach," says Genia Turanova.
The contributing editor to Stephen Leeb's The Complete Investor explains, the "Along with the energy sell-off, unregulated utilities have declined even more-to bargain levels." Here's a look at Florida-based FPL Energy (NYSE: FPL).
"FPL is one of our favorite alternative energy holdings. And with the recent selloff, its yield once again qualify the stock as a legitimate full-fledged income plays.
"And as its quarterly results indicate, the unregulated utility is relatively immune to the nation's slowdown, making them among the surest growers in the marketplace today.
"The skies over the Sunshine State have been quite dark because of the housing sector's woes and the subsequent credit crunch. As a result, the Florida-based company's adjusted earnings per share increased 'only' 8% on a year-over-year basis.
"Most utilities these days, however, would consider that figure a banner number. Moreover, FPL's management reiterated its full-year earnings projection of $3.83 to $3.93 a share, to be followed in 2009 on the order of $4.15 to $4.35 a share.
"That's mostly because of the company's stellar growth in alternative energy production. Via its unregulated division, FPL Energy, FPL is the largest wind provider in the U.S. with aggressive plans to add even more capacity.
"Today it owns around 55 wind farms in 16 states. In addition, it's also one of the world's largest generators of solar power, with its operations encompassing the two largest solar fields in the world.
"All told, the company plans on spending between $100 and $300 million a year until 2012 to add to its renewable energy production capacity.
"FPL's wind and nuclear businesses have experienced unfettered growth, resulting in accelerated overall expansion for the company. For the second quarter alone, adjusted earnings per share grew nearly 17%, strongly contributing to overall growth of the company.
"Possessing one of the strongest balance sheets in the industry, yielding nearly 3% with a payout ratio of less than 60% of its earnings, FPL is a strong buy here."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
10-09-2008 @ 1:35PM
Ray The Money Man said...
We are getting some amazing buying opportunities here but we are probably headed lower so there is no reason to be a hero and be the first one in.
Great post!
http://thealternativeenergyinvestor.blogspot.com