Selling a European Utility Scottish Power (SPI).

Selling a European Utility  Scottish Power (SPI). 

With p/e ratios roughly equal to that of the general market I think utilities in the US are vastly overvalued.  As a result of the of the recent merger mania among utilities in Europe, I now think same is true of European utilities. On Jan 16^th (yesterday), I sold my long time holding in Scottish Power ADRs (SPI) at $58.43.

Disclosures and Confessions:

I first acquired Scottish Power through my participation in a Dividend Reinvestment Plan (DRIP) at PacifiCorp in the early 90’s.  Back then, there were no online brokers, I wasn’t making much money and I saw a couple hundred dollars of monthly contribution to a commission free DRIP as a great way to accumulate savings.  Pacificorp was acquired by Scottish Power.  The DRIP was terminated, I transferred my shares to my online broker then purchased more shares of Scottish Power ADRs. In 2005 Berkshire Hathaway purchased PacifiCorp from Scottish Power.  Oddly, I owned Berkshire Hathaway (BRK/A) then and now.   I’ve been benefiting from Pacificorp and its vast hyrdroelectric power generation for over almost 15 years and via three different corporate entities.

As of this sale I have no position in SPI.  I own and have traded Berkshire Hathaway (BRK/A) in the last two years.

Disclaimer: Nothing in this web log is meant to be a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult your own investment professional before buying or selling any security.