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Friday, 06/13/2003

Another tool for your Utility Belt
By Nich Sheldon
TXU - TXU Corp.

Company Description

TXU is a major energy company with operations in North America and Australia. TXU manages a diverse energy portfolio with a strategic mix of more than $32 billion of assets.

TXU's distinctive business model for competitive markets integrates generation, portfolio management and retail into one single business.

The regulated electric and natural gas distribution and transmission businesses complement the competitive operations, using asset management skills developed over more than a hundred years to provide reliable energy delivery to consumers and stable earnings and cash flow for stakeholders.

In its primary market of Texas, TXU's portfolio includes 19,000 megawatts of generation with a fuel mix of coal/lignite, natural gas/oil, nuclear power and wind. TXU serves five million customers in North America and Australia, including 2.7 million competitive electric customers in Texas where it is the leading energy retailer.

[Source: Company Website]

Reasons to Invest:

Yet again another Utility Sector (UTY.X) stock worth noting here on DripAdvisor.com. TXU Corp (NYSE:TXU) is a holding company that focuses on generation, purchase and distribution of electricity. They also engage in the processing, transmission and distribution of natural gas, power development and telecommunications. For the first quarter this utility stock's revenue rose a whopping 15% TO $2.82 billion. This occurred because of higher trading offset by lower operating margins.

Revenue increases are just the start of good signs with TXU as their current closing price is 121% higher than their dramatic sell-off mid-October 2002. In fact, TXU is up 49% since breaking support of 15.51 this past February. Furthermore, the charts show us that its last resistance level of $21.43 was exceeded on June 12th, 2003 with a breakout to $22.36. It will be interesting to see if the stock uses this break above resistance as its next support level.

In respects to price performance over the past four weeks, TXU Corp is ranked 78th out of 99 companies (99 being the best performer) in the Utility Index. On a 26-week scale they are 89th and over the past 52-weeks they are ranked 52nd, which would be notable higher had TXU Corp not had its sell-off last October.

Fifteen out of the eighteen brokers recommending TXU are recommending a hold rating. Our predictions are to get in while the bulls are going long and to ride TXU's "electric waves." Besides, TXU Corps current closing price is only a penny shy of its 200 DMA and this could cause for a serious price hike if the stock does bounce off support of $21.43 and not falter back to the $21.00 range. Additionally, the stock does represent an attractive investment over the upcoming months as the Utility Sector powers its bullish move.

Until Next Week,
Nich Sheldon

DRIP Information:

Shares to Qualify = 1
Auto-reinvestment = yes
Min/Max = $25 to $250,000/year

Auto Reinvestment Available 
from your Bank Account: Yes
Reinvestment Fees - no

Foreign Accounts Accepted: No
Temper Enrollment Allowed: Yes

Dividend investment fees: none
Cash investment fees: none
Auto reinvestment fees: none

To Transfer Units: 
TXU Business Services
Direct Stock Purchase and
  Dividend Reinvestment Plan
P.O. Box 130059
Dallas, Texas 75313-0059
Phone: (800) 828-0812

Corporate Headquarters
Energy Plaza, 1601 Bryan Street
Dallas, TX 75201 
Phone: (214) 812-4600
Fax: (214) 812-7077
Email: shareholder@txu.com





 
 

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