Since the uber-mega-buyout of now former Income Investor pick TXU
No wonder, then, that the other four largest U.S. merchant power outfits have been on an absolute tear this year. As if tight regional generation capacity paired with sloshing buckets of private equity money weren't enough to spark investor interest in the sector, Mirant
It wasn't so long ago that Mirant and rival NRG Energy
So, for those of us who have been sitting on the sidelines as all of these stocks zap to new 52-week highs, the question is: What do we do? Well, looking at valuation is a good start.
Some of the firms we're talking about, namely Dynegy
You might want to ask yourself: Do I really want private equity's leftovers? Alternately, you might pause and wonder whether anyone ever made a fortune by betting on a situation that had already been bid up dramatically. I guess what I'm trying to say is that you should probably do nothing. After the thinking and the questioning, I mean. Those are good things.
There have got to be better bargains out there in the market today, and they're undoubtedly the ones that haven't already made front-page headlines.
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