morse@leadsv.UUCP (Terry Morse) (08/16/85)
The Securities and Exchange Commission has announced today that Middle South
Utilities may have to file for chapter 11 protection (that's bankruptcy).
It seems that the state of Louisiana has refused to grant MSU rate
increases to offset the cost of their nuclear power plant.
I can't believe that Louisiana would let their power company go into
chapter 11! The scare produced by the possibility of interrupted power
should be enough to sway the legislature. Not to mention all the widows
and orphans who depend on MSU dividends for their income. The SEC has just
added some more urgency to the problem.
The stock was at 8 3/4 at 12:00 EDT on 8/16. That's down from 15 last
month. Looks like a pretty good buy, don't you think? Especially when the
book value is 25.
Does anybody have any more news on MSU? We widows and orphans want to know
what to do with our stock.
--
Terry Morse (408)743-1487
{ seismo!nsc!cae780 } | { sun!sunncal } !leadsv!morsejcp@brl-sem.ARPA (Joe Pistritto <jcp>) (08/22/85)
On the 19th and 20th, I heard that MSU is appealing the Louisiana PUC decision to grant NO rate relief to it. On a previous appeal, the federal appeals court overturned the PUC decision. Part of the problem seems to be that the PUC is elected in Louisiana, and everyone is trying to look like a hero. These charges relate to costs in putting a recently completed nuclear power plant on line, which requires some sort of rate relief (the utility asked for $350 million). I think the stock is an excellent buy at 9 (I bought mine some time ago at 11 1/2). It is a bit of a gamble though, (now, quickly, how many of you bought Chrysler at 3 1/4...) -JCP_ -- If guns are outlawed, how will we shoot the liberals...