We own a little bit -- a little over 100 shares -- of CNP, Centerpoint Energy. I am for selling at the opening bell tomorrow. The wife thinks it could be a long term opportunity. We have made 29% lifetime on the stock so certainly don't mind selling.

For those of you who don't know the company, it pays a little dividend, has a fairly stable price and its business is:

Quote:Centerpoint Energy, Inc., through its subsidiaries, operates as an energy delivery company in the United States. It operates through Electric Transmission and Distribution (ETD), Natural Gas Distribution (NGD), and Pipelines and Gathering segments. The ETD segment provides transmission and distribution of electricity from power plants to substations, one substation to another, and to retail electric customers in Houston/Galveston metropolitan area

Got to read this lovely quote from them tonight:

Quote:"Our service territory is going to be targeted," Centerpoint spokeswoman Leticia Lowe said. "We're moving a lot of equipment and trucks inland ... But who know what'll be left?"

Lowe said their emergency plan also calls for relocating key personnel to better-sheltered service centers since the last time a big storm -- Alicia -- struck Houston it blew out windows in the most of the city's downtown skyscrapers, including the headquarters of Centerpoint's predecessor, Houston Lighting & Power.

That was in August 1983. Alicia, a Category 3 hurricane, sent a 12-foot storm surge into Galveston Bay and knocked out power to 750,000 customers. It took 16 days to get everyone reconnected to the grid.

I vote sell. What say ye all?

What about sell and rebuy once it tanks tomorrow?

Yup. Could do that. I am surprised it didn't get slammed today, but it held steady.

That way both you and the wife are happy.

I would seriously suck as a day-trader so you do not want my advice.

Wouldn't their services become more valuable? It sounds like they can move their people and their equipment out of harm's way. Won't they then be able to come back into town and power up?

Erik, I try to never time markets either, but this just looks like a recipe for disaster to me.

I don't know, Nicholmere. You may be correct. I'm worried about the expense in downed power lines, overtime, increased insurance premiums and the cash flow hit when power is out for a couple of weeks.

I know that is extremely short-term thinking, and I am the King of Buy and Hold (actually, Sharebuilder, but you know what I mean). It's not the end of the world if the stock loses half its value tomorrow, and it sure ain't like it's Delta stock two weeks ago or something. There are tangible assets on the balance sheet.

hmmmm.....

Could you sell half your shares and keep half your shares?

Poll results are 1 to 1.

I think we're going to hold and pray. Let's see what happens. Be a good lesson and will keep you periodically updated.

I'd vote to sell.

But then, I got burned in 1999/2000 when I held on to one of my India IT company stocks for too long. It's worth pennies now, so I keep it just to remind me not to be greedy and stupid again. (I did make a killing on another one, so it's a mixed message.)

That was us, Lynn. Except it was Allaire stock. We missed the bubble to sell.

I'd sell and then buy the 100 back once the price dropped. Then you have your profit as well as keeping the shares for the long haul. Win-win in my book.

What kind of brokerage fees? If it were me, I'd hold, btw. I have done really well recently with various energy-related stuff.

Cindy

2-2. You guys are no help. :laugh:

Brokerage fee is $15 or so per trade. Certainly can easily absorb it. Stock is only down 32 cents right now on about $14/share.

Yep, still own it. Nope, might not tomorrow.

Well, I didn't vote in the poll since my solution wasn't in there, so count me separately.

Hold it. First, if the fundamentals of the company were solid yesterday, they'll be solid tomorrow. Second, if past performance is any indication of future performance, this administration will be very generous with post-hurricane tax breaks and reconstruction assistance. Third, this ties the poll again. :finger:

Yeahhhhh, I probably will hold it tomorrow. It's not like our retirement or anything. Like some of you, though, I've ridden a few stocks down the rails.

But I'll probably hold. Meanwhile, my stake in an oil exploration company is going crazy.

More than 450,000 CenterPoint Energy customers in Texas were without power in the Galveston and Houston areas.
Well, they do say "any publicity is good publicity"

I saw that. Like I said, cash flow is going to take a hit. But while Rita seems to be a bad storm, it is nothing like the Katrina, Jr. it was made out to be. I suppose things would have been worse if Houston had taken a direct hit, but luckily, the damage seems relatively minor and there are no reported deaths.

For the record, CNP was down about $1/share early in the week, but gained about 30% of that back yesterday. Buy and hold. I adopted that strategy a decade ago, and while I got cold feet this time, it still hasn't failed me. Okay, the once....