"After a solid 29.6% first quarter gain, earnings for the electric and gasutility are on track to hit $1.45 to $1.55 for 2008. That’s the highest since Xcel dumped its money-losing unregulated operations and returned to its former operations as an eight-state regulated utility.
"The balance sheet for is rated BBB+, and equity has climbed back to 44% of capital. Xcel’s future growth will come from rate-base growth, which is expected to average 7% annually through 2011.
"Most will go to renewable energy and 'negawatts' (conservation) that enjoy strong regulatory support, maximizing recovery of investment in rates.
"A smart grid for Boulder, Colo.—targeted for completion in December 2009—could be a prototype for the rest of the company’s system. If successful, the ute will save energy, reducing construction needs and carbon emissions. Moreover, the cost--much of which is government-subsidized--will boost earnings.
"For the past five years, Xcel has averaged annual total returns of a little more than 13%. Adding projected rate base growth to a yield of slightly more than 4%, look for 11% to 12% returns over the next five years.
"Buy Xcel Energy up to 25. In addition, the Xcel Preferred E (NYSE: XEL-PE), which pays quarterly dividends of $1.04, is a buy up to 82."
Ken Kam follows 70,000+ stock pickers who run virtual portfolios on Marketocracy; he looks for stocks bought by the 'best' while being sold by the 'rest'. Here's his two latest ideas.
"We've recently seen a nice assortment of stock splits," says Neil Macneale, whose 2-for-1 portfolio only include stocks announcing splits. Here's his latest buy: Graham Corp. (NYSE: GHM).
In The China Trader, editor Keith Fitz-Gerald looks at two plays in Chinese online gaming, noting, "Each has spectacular numbers in recent months and stellar growth prospects."
"Despite the expected pullback in oil, we're as bullish as ever," notes Larry Edelson, editor of Real Wealth. Here, he looks at Canadian pipeline operator, Enbridge (NYSE: ENB).
Although not yet formally recommending the ETF, fund expert Doug Fabian takes a look at the a new ETF invested in dividend-paying Middle Eastern stocks in his Making Money Alert .
Mark Skousen's latest book, “EconoPower: How a New Generation of Economists is Transforming the World” (Wiley & Sons), is available for $16.47 (plus shipping) from Amazon.com (retail price is $24.95).
Included is a discussion of the new field of behavioral finance, with economists as Richard Thaler, Robert Shiller, and Jeremy Siegel.
Global ETF expert Carl Delfeld of Chartwell Advisors is hosting a investment tour from January 26th to February 2nd, 2009. The luxury tour visits Singapore, Malaysia and Thailand plus 3 days on the Orient Express. For information, call 877-202-4939.
Sy Harding, editor of Street Smart Report, has just published Beat the Market the Easy Way -- an in-depth review of seasonal market patterns and their application to long-term timing.
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