Mirant (MIR) is a business that makes money through the transportation and selling of electricity.  They recently had a very successful quarter by hedging their electricity.  Their reasoning was to secure them for 2009 and 2010 from lowering electricity prices.  This was definitely a good bet.  They have the lowest PE of any of the electricity companies at 1.48.  The next companies all rank of PEs of 8+.  They have over $2.4 billion of cash.  So much that many people arguably would like them to give it away as a dividend.  However, management is smart enough to utilize this money and use it to make the company even better.

Long-term wise, this stock can only appreciate in value.  Inflation will continually make this stock move up.  Everyone needs electricity.  Electric cars will eventually come out and you can bet this industry will continually be utilized as its a cleaner source of energy than others.  In the short-term, there are rumors of it getting bought out.  With the cash on hand of at least $10 in stock and its business operation, I wouldn’t see a sell unless the price was at least $20.  This is a worth-while stock at $14 and I’d suggest taking some shares while at this level.

For you dividend players, Consolidated Edison (ED) is the perfect choice with a dividend of over 6%.  They have been giving their dividend consistently for over 35 years.  They provide electricity to New York probably the safest bet in any utility location.  As a regulated industry, you will not see much downfall in this stock but I’d definitely see a lot more gain in it.  In the mean time, collect a nice dividend. 😉