I noticed Chair/CEO Mike L Rose keeps buying more and more and more shares. At today's price (58.45) I think he has ONE BILLION DOLLARS of TOU. Would like your thoughts on why he is so confident on his company. Also, Barry Schwartz indicated it is kind of an AI play as the demand for energy rises. Comments please.
Thanks, Greg
AI demand is going to increase electricity demand, and as a natural gas producer TOU should see some incremental demand benefit. But it is not quite that easy, as the infrastructure needed to support higher demand may not be there as fast as needed. Weather, storage, LNG and other factors will remain just as important when looking at natural gas demand. But TOU is a very solid company. Mr. Rose and his team have built and sold numerous companies, and he knows the sector absolutely. We might not read too much into recent purchases, as he is a very rich man, but it is certainly a continued sign of confidence. The yield on the stock is higher than he could get on a savings account, of course, and that's not even considering all of the company's regular special dividends. The stock is cheap, has a VERY strong balance sheet, and good growth is expected. Mr. Rose has the timeframe also to wait for a sector rally.