Goldman Sachs Downgrades Utilities
Goldman Sachs (NYSE:GS) analyst Michael Lapides downgraded the utility sector in general from "Attractive" to "Neutral."
Lapides has changed his tune on this one, saying his previous upgrade of utilities was premature, especially since prices of natural gas are uncertain going forward.
Strangely, Lapides expected prices to increase based on getting rid of inexpensive electrical costs by pressuring coal plants to taken offline, as well as what I would call draconian environmental regulations which would strangle poor people who will struggle to make it if that were to happen.
So much for wishful thinking and activist grading, which doesn't belong among legitimate analysts.
The difficult economy shows why inexpensive energy is vital for the majority of people who would otherwise be unable to pay their bills.
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