I expect Kraft shares to be in high demand and to produce a significant premium over and above their issue price. California has utility investors in a tizzy. Right up front you need to know that the business you're looking at is different from those embattled operators on the left coast. Revenue growth is steady. Profit growth was sudden, but previous years' numbers were nominal.
Utilities trade on earnings and dividends.
I think there is a small pop in this deal right away, and I expect the stock to fall in line with those of similar operators based on dividend yield. Owns and operates most of the crude oil and refined product pipeline, terminal operations and storage assets that support Ultramar Diamond Shamrock Corporation's refineries. Extremely profitable and a solid name. Comparables are still the best means to use for predictive analysis. I see a very strong demand for these deals.