utilities vs industrial stocks performance, page-6

SKI has changed from a yield stock to a growth stock. The earnings profile is still the same - the predicted growth is still the same. Only difference is the stock has a cleaner ownership structure (read - more attractive TO target)

The end result will be the same - the only difference is the earnings will be injected back into the business instead into the hands of shareholders. Besides, given their scorecard - I trust mgt to manage my share of the earnings better than myself within the reg. util industry!

If you are on a primary income which pays general living expenses - SKI can be left on the bottom drawer to grow over time. Also - earnings are indexed to CPI so rising interest rate are no drama.

I must admit I was a bit unhappy with the cut to divs after some more thinking - SKI is great for negative gearing or those lucky to get in at offer price.. CF neutral.