Looked like a huge rotation out of Utes and REITS. Basically profit taking and money flowing to Financials and Oil related. Short term money out there chasing momentum. Funny that Utes and REITs were the momentum play until today. If you are an income investor, don't let these short term renters bother your plans. Hold on for the rising dividends if that is what you bought for in the first place. I never had a position in AEP, but today gave me an opportunity. I already own D, DUK, ED and SO. What do I know I am just an average guy, looking for an average return in the simplest way possible. I don't possess the ability to be in the right place at the right time and always own things that only go up like today's young geniuses think they do.
Akins is the best CEO AEP's ever had, sorry Draper. Ohio is as delusional as Kasich, you can't reason with idiots so dump the generation keep transmission. Ohio generation will fall apart within 5 years and then AEP can buy back its plants for pennies on the dollar and call the shots.
Sentiment: Strong Buy
What's going on is that the retiree's friends - - utilities and REITs - - got pounded hard today. It happens every two or three weeks, just not as bad as today. Can't complain much though. Both sectors have had a great run.
I just didn't like the news today and think the stock could be under pressure the next several months. I decided to buy XOM with the proceeds. I will be back in AEP if it comes back down to the $56-58 range! GL
You were right. This is not just a one-day thing. This is rotation that could go on for a while.
Always wondered though. Who decides when rotation starts? Who sent the signal that Wednesday, April 20, 2016 is the day to start selling REITs and utes?
It's a new FERC ruling against subsidies for AEP and FE. This is findable through either company's financial news. The other utilities are not affected-- See ^DJU, for example.