Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

RSS FEED

» Help

Current DateTime: 09:26:48 23 Nov 2009
LinksList Documentid: 30328029

CNBC Stock Blog

Text Size
Jul.24
3:44 PM ET
Thursday, 24 Jul 2008
Play the Coming Power-Grid Upgrade

America's electric utilities are about to sink a small fortune into a desperately-needed upgrade of the nation's power grid.  How can an investor plug his portfolio into this upgrade?  JPMorgan's Andrew Smith has some ideas.

Recommendations:

"The one pure-play transmission company is ITC Holdings [ITC  Loading...      ()   ]," he told CNBC.  "They own nothing but transmission lines, own, operate, and build them, and also stand to benefit very well from that. The Energy Policy Act of 2005 put together a number of incentives for transmission investment...that allow a company like ITC to benefit very significantly."

He also likes Entergy [ETR  Loading...      ()   ] and Dynegy [DYN  Loading...      ()   ].

"Entergy is in the process of spinning off its pure-play unregulated nuclear power-plant fleet, that in the absence of new power-plant development, increases significantly in value," he said.  "Likewise, as we talk about restricting greenhouse gas emissions in the U.S., the value of those nuclear plants, which have no (carbon dioxide) emissions, increases fairly sharply."

Dynegy's appeal is slightly different: "It is more conventional in terms of a broad mix of fuels," he explained.

___________________________________________
CNBC.com Video Reports:

- Best Trades Now: Tech, Utilities, Financials & More

___________________________________________

Disclosures:

ITC Holdings, Entergy, and Dynegy are all investment-banking clients of Smith's firm.

Disclaimer

© 2009 CNBC.com

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 05:29:33 23 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 10:08:23 23 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 08:24:12 23 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:08:15 23 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters