The bullish firms believe PPL continues to benefit from its steadily increasing cash flow, strong balance sheet, and well-managed merchant power operation.  Other positive factors are balanced regulation in PPL's Pennsylvania service territory, prospects for an increase in kilowatt sales growth in late 2H10 to a rate of above 1%, and strong cost controls.  These firms believe PPL has an improving credit profile and cash flow position as well as sufficient credit facilities for its expected needs over the next several years.  These firms also believe the Company offers an above-average dividend yield and favorable hedge profile at a nearly 20% discount to its diversified peers.