Equity Research and Investment Analysis

For investors worried about the near term future of the stock market, this may be a decent defensive option with a beta coefficient of only 0.39. Furthermore, the yield which has been steadily rising also offers some protection for investors. With limited downside risk and a valuation that suggests plenty of upside, we think long term value investors should begin to familiarize themselves with Vectren.

Ockham sheds some light on our valuation of BP with its attractive 8 percent yield. Of course, investors should always investigate a high yielding stock like this to make sure that there is no danger of a dividend cut. Barring something unforeseen in the earnings report tomorrow, we think that BP's dividend is good to go, making them an attractive buy candidate.

Chesapeake Energy's (CHK) stock price has been hammered over the past few months due to the bursting of the energy and commodities bubble. Also, some investors have voiced concern over CHK's high debt level. However, we see this sell-off as a great buying opportunity for patient investors. CHK has hedged itself to offer some protection against the recent slide in natural gas prices and has assets significant enough (including rights in the Marcellus Shale field in Appalachia) to give it a book value in excess of its current market value. To Ockham, these considerations make CHK a stock worthy of the attention of long-term investors.

Nicor, Inc. (GAS) shares are a bit extended after a strong run-up over the past six months. As such, Ockham recommends selling these shares to look for more out of favor alternatives.

A long awaited wave of consolidations for regional utilities may be underway, as FirstEnergy (FE) and Allegheny Energy (AYE) have agreed to merge. The combined entity would be one of the nation's largest electric utility providers and would service 6 million customers from Ohio to the eastern seaboard, 7 states in all. Furthermore, at current estimates the company would bring in revenue of around $16 billion and profits of $1.4 billion.

For investors worried about the near term future of the stock market, this may be a decent defensive option with a beta coefficient of only 0.39. Furthermore, the yield which has been steadily rising also offers some protection for investors. With limited downside risk and a valuation that suggests plenty of upside, we think long term value investors should begin to familiarize themselves with Vectren.

These are exciting times for technophiles as everyday technology becomes more and more integrated into life. In the first few days of the year techies are treated to a major unveiled of Google's (GOOG) much anticipated Nexus One handset. Furthermore, a feast of new gadgets and gizmos will be on display later this week at the annual Consumer Electronics Show or CES for those in the know. There is a buzz and an excitement in the air surrounding the tech sector, which begs the questions: Could tech stocks repeat the impressive run they enjoyed over the last year?

It is not uncommon for AES or its peers to maintain high debt levels, but it is a positive in our view to lower the debt burden while increasing cash flow. The solar projects are not going away, and as the global economy starts to grow demand for energy will ramp up again. In this circumstance we think it wise to tighten the belt a little, and continue to strengthen the company through a downturn.

We are following up on our article regarding Gas Utilities two months ago that recommended that this defensive stocks may provide an opportunity to risk averse investors. Well, our research has come full circle on many of these stocks and now we believe that each stock we cover in the group is overvalued, except for one.

Gas Utilities could be headed for a few big months as the weather gets cooler in the winter. Here is our pick for who stands to benefit from the change in seasons and also a couple of stocks to avoid.

Excelon is offering $6.2 billion in a stock deal to buy NRG Energy, the second biggest energy producer in Texas. The companies combined would very likely aggressively pursue nuclear energy together as both company's have expressed strong interest in that field. It seems like a good deal from our analysis, will the NRG shareholder's agree?