Provider of electricity and energy services. 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.
We think there's a small pop in this deal right away and expect the stock to fall in line with that of similar operators based on dividend yield. You should too, as the businesses are remarkably similar. Verisity, last time I looked, was a double from its issue price. I'm going to skip the spin and tell you that I'd bet with the comps on this one. As a company, the products they produce are a bit scary from a liability standpoint.