• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Dutton Associates Announces Investment Opinion: Maine & Maritimes Buy Rating Maintained in Update Coverage By Dutton Associates

Posted on: Friday, 30 November 2007, 12:00 CST

Dutton Associates continues coverage of Maine & Maritimes (AMEX:MAM) reiterating its Buy rating and a 12-month $42 price target. The 16-page report by Dutton senior analyst Sally H. Wallack, CFA, is available at www.jmdutton.com, and at First Call, Bloomberg, Reuters, Zacks, Knobias, and other leading financial portals.

Maine & Maritimes is the parent company of Maine Public Service Company (MPS), a regulated electric transmission and distribution utility serving much of northern Maine. During 1Q, the Company announced plans to divest unregulated operations and return to a focus on its regulated business, MPS. During the first nine months of 2007, the Company divested or discontinued all unregulated operations with the exception of a 50% interest in Maricor Properties and 100% interest in Mecel Properties. The Company expects to divest these interests before it files its 2007 10-K and anticipates that the divestitures will generate positive cash flow and have little impact on earnings. The Company reported 3Q regulated operating revenues of $8.02 million, versus $8.03 million in the prior year, and a net loss from continuing operations of $362,000, or $(0.22) EPS. This was well below the prior-year's loss of $1.07 million, or $(0.66) EPS, and also much better than our estimate of EPS of $(0.49). In light of the better-than-projected 3Q results, we raised our 2007 and 2008 diluted EPS estimates for MAM from $1.20 and $1.45, to $1.55 per share and $1.75 per share, respectively. As detailed in our report, MAM's shares are trading at significant discounts to the averages for other small-capitalization and mid-capitalization utilities. We consider the EBITDA measures more telling than price-to-earnings multiples, since the Company's earnings are held down somewhat by substantial amortization charges for stranded costs.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in the Dutton Associates one-year continuing research program is US $35,000 prepaid from the Company for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $67,000 from the Company for 8 Research Reports with coverage commencing on 5/16/2006.

Dutton Associates does not accept payment of any of its fees in company stock. Its principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures, and analyst background at www.jmdutton.com before investing.

Source: Business Wire

More News in this Category