On June 7 I bought another block of MGEE at $34.36/share and since then it has gone up to $36.76 as of this writing. That is an immense move for a utility, and especially one like MGEE which steadily increases in value, but typically at a much slower rate. Of course, this makes the yield look worse then when I bought it – but the increase in stock price is a nice problem to have. Problem for me is that I need to hold it until it is long term as if I sold it now I would get killed on the gains come tax time. No matter – I hold it like a bond anyway and actually count it against my fixed income side in my allocations.
The only thing I can think of to explain the quick move is that a large institution or some other big baller has plowed in for safety and/or yield. It will be interesting to see in the coming months if they sell it or hold – that will tell the tale if the institution/baller was buying for safety or yield.