Southern Company's revenue is down and the company's earnings are likely to increase only modestly in 2009. The recession is causing the consumption of less electricity. Talk of "cap and trade" legislation is of concern to any Southern shareholder. Southern is a very large producer of CO2 and continues to rely heavily on coal as a major source of its energy production. Clearly environmental concerns and regulations are major considerations.

Now may be a great time to buy the stock. Southern produces an essential product and its market share and profitability are virtually assured under the watchful eye of the Public Service Commission. The annual dividend is in the range of 5.5% and the long term consumption of electricity will no doubt creep higher. Southern may spend quite a bit developing and refurbishing its nuclear generating capacity, but eventually all cost will be passed on to the electricity customer.

The stock price will fluctuate in part because of the desire of investors to "make more money faster." However, year in and year out buying Southern stock at a price of less than $32 a share (52-week high is $40 per share) will likely be a smart move for virtually any investor.

Preston F. Sanders is a Chartered Financial Consultant and Registered Investment Advisor. He lives in Washington, Georgia, and can be reached at prestonsanders@bellsouth.net.

NOTE: Any investment can lose value. Don't buy any stock without a careful evaluation of it's appropriateness for your situation. See your financial/investment advisor.