Squawkbox market analysis with Danielle Morellino from Thomson FinancialTranscript:Welcome to the Thomson Squawk Box On the Radar Report. I'm Danielle Morellino.PNM Resources (PNM) is a utility stock we are watching as a long play in the coming weeks, as we think the early details of a requested rate increase could come shortly, and that management will get most of what it is seeking.Following are the top five reasons why PNM will likely to get most of what it is seeking, even in a difficult economic environment for consumers.Number One: PNM has shown it really needs the money. Now near a 6-year low, the shares fell 25% percent earlier this month after it missed expectations with 49% lower profit vs. the year-ago period, due to plant outages, lower margins, and risks related to the pending rate case.Number Two: The company's prices are 27% lower than average in the Southwest region. And it will still be the low-cost provider in its state if it gets all of the increase it's asking for.Number Three: PNM hasn't had a rate increase in at least 14 years, a very long time versus industry peers. An increase would be harder to get if it just requested one recently.Number Four: The big reason PNM's rates have been so low is because it was previously allowed to sell excess generation from some of its plants. It now has far less excess to sell, which is why there is a need for the increase.5) PNM services Sandia National Labs, Los Alamos National Labs, Intel and the University of New Mexico. It's in a growth state that is adding manufacturing jobs. A debt downgrade could occur. And that could hamper growth plans for existing large customers. Also, it would potentially scare off new companies from coming to New Mexico. We think those considerations would have to weigh heavily on the hearing examiner.For more trading ideas in real time, and for directional commentary throughout the day, visit thomson squawk box dot com.