Not knowing from which utility this stock emanates, but being an
employee of a California utility that was on the forefront of the
nation's turn to deregulate, my advice is to go with the advice of the
Finance Committee.  Liquidate!  Quickly.  Many, many of the states in
the US are headed toward deregulation, as have some of the other world
electrical markets.

A utility's stock was considered a solid investment heretofore when
there was something called a guaranteed rate of return.  Whatever the
utility did, good or bad, it could flow its costs through to the
ratepayer and expect to get its investment returned plus a premium.

In a deregulated marketplace, a utility is on its own to sink or swim.
 The "communistic" like environment that was perpetuated during
regulation is hard to die.

In my own 401K portfolio, company stock is less than 5% of what I hold.


Indigo Nights
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---Museum <[log in to unmask]> wrote:
>
> We were recently given a restricted endowment in the form of a solid
> utility stock.  I'd like to keep it as stock.  Finance Committee
wants it
> converted.  Can anyone give me a case for keeping the stock and/or a
> finance policy that includes stock as one form of asset?
> Ann Kiewel
> Holland Museum
>

==
Indigo Nights
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