
If you are looking for a reliable company that is currently undervalued,
Great Plains Energy Inc. (NYSE:
GXP) might be perfect. GXP is a power company that gets almost all of its revenues from Kansas City Power & Light; this is a regulated business with highly predictable demand, and, not surprisingly, GXP has seen its revenues climb steadily over the past few years.
As an investor, you can rest assured that GXP will enjoy similar growth in the coming years, especially given its commitment to invest in its production capabilities, which will enable it to supply enough electricity for growing populations and growing demand. GXP is also in the process of acquiring Aquila, a Kansas City power company; this acquisition will help boost supply and will be an easy merger to navigate given that it operates in similar territories. I am betting that the company's stock could pop once that merger is complete and Wall Street sees the results -- a well-managed organization that has integrated the assets of this newly purchased business.
In addition to being a reliable generator of revenues, GXP is also appealing for a few other reasons. It has a wide range of sources, from coal to natural gas to wind, which will enhance its stability. GXP is also widely respected for its openness to green technology, and it recently agreed to the Sierra Club's demands for several modifications to a new coal-fired plant. It's a well-managed company, which is a large part of why
GXP won the 2007 Edison Award, a prize given to top energy companies each year.