Starks dilemma on recommendation of either hold, buy or sell.

Merill Lynch utilities has downgraded rating,they expect a reduction in dividendas it was as high as 90 .

Stock price has declined by !

"#L expanding,Stark expected either an inc in dividend or constant

$etail wheeling a ma%or challenge

#roblem of high dividend pay out from &99'( in excess of 90 ) given the risks inthe industry.*his high payout has lead to company showing no growth individend and industry speculation of reduction

#roblem +

$etail wheeling, which was lead to reduction in market value of company-s incalifornia and was expected to give a domino e ect in other parts as well

/xpansion and diversi cation through merger and ac1uisition

2/#3 will lead to reduction in market value, thus reduction of pro t, thusdiversi cation in alternate energy sector(renewable) to inc the pro tability

Mergers with pro t making rms

3 mix of both pro table mergers and diversi cation in alternate energy sectors

#roblem '

4ncrease in long term interest rates since &99', high interest rate expense willlead to less dividend for stock holders

$eduction in dividend

5etting rid o multiple ac1uired organisations which contribute only + to the revenue

$eduction in dividend, lead to more retained earning, less external debt,reducing the interest expense

3c1uisitions for diversi cation, making + contribution to revenue, should be sold out

5etting rid of ac1uisitions made for diversi cation,saving funds to invest in altenergy sectors

"#L doing good,high dividend payout,int expense,reduction in stock price,leadingto doubts in perf

6onstant dividend

/xpansion in alternate energy sector

Selling o new unrelated ac1uisitions