Friday, January 12, 2007

I Looooove Sempra.

In the new issue of Business Week, stock market guru Gene Marcial fawns over Sempra, noting that it's up 10 points since June to $55/share, with a price target of $60!

Why is The Street so in love with Sempra? Marcial states, "Sempra is a utility in motion: It's partly switching from a utility into an acquirer and developer of energy assets."

The write-up also cites other factors that bode well for Sempra:

"Its other operations are unregulated, including energy trading, liquefied natural gas (LNG) terminals in North America, and gas pipelines and storage facilities in the U.S. and Mexico. Sempra may form a master limited partnership for these, he says. Paul Justice of Morningstar (MORN ) says: "We're particularly excited" by its entry into LNG and partnership with Kinder Morgan (KMI ) to build a pipeline from the Rockies to the Midwest. Both ventures should provide stable cash flow for years, he says."

And that's really what running an energy company is all about, right? Stable cash flow. Discuss.