PPL (PPL) has been a continued underperformer, as I already feared in December of last year when I reviewed the prospects in this article, "PPL - U.K. Woes Might Last For Year(s)".

I was concerned about high leverage, rising interest rates, elevated capital spending and a weaker pound, given that the business has a large UK business. Another major concern is that political pressure might hurt the fat profits reported by the UK business.

I have foreseen continued negative cash outflows (for years to come), which, combined with the issues above, made me very cautious despite the appeal of a 5% dividend yield. As shares have moved lower ever since, I recognize that the risk-reward has improved, yet the underlying dynamics remain as challenged as they were half a year ago.

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