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Mon Aug 13, 2001

Most power generator stocks are suffering from oversold conditions that could translate into an investment opportunity, according to a UBS Warburg analyst

Barry Abramson said in a research note Monday that many of the merchant generators and independent power generators are trading below their expected earnings-per-share growth rates projected out over five years.

As a result, he recommends investment on weakness in electric merchant generating companies that have significant retail sales hedge from their utility customers, such as Exelon Corp. (EXC: news, chart, profile) and PPL Corp. (PPL: news, chart, profile).

Abramson also recommends companies that have strong positions in natural gas and energy trading, including Duke Energy (DUK: news, chart, profile), Dominion Resources (D: news, chart, profile).

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