After having a discussion with someone at a subsidiary of EIX, I was told that the company is in the hole (major) for several million dollars, the Public Utilities Commission (PUC)is cracking down on everything the company is doing, including maintenance and service.
In addition, with renewable energy coming in the forefront, EIX will also be having additional revenue problems.
The company is currently and desperately fighting an expensive media campaign to pursuade votes against the new proposition 7, spending over $100,000 so far on air time. Voters are more likely to vote for renewable energy initiatives that are more favorable to the environment.... By the way, EIX contradicts itself by making statements/making commercials for the protection of the environment, yet contributes money against renewable energy???
Everyday, wasteful commercials from SCE are aired on every channel communicating nothing new to people and customers who are obligated to pay bills to this electrical monopoly.
Hope this insight helps those who view this company as a viable investment.
1. Where are these wasteful commercials you mentioned running? I have not seen any of them yet.
2. How do we know your contact at the subsidiary is not a disgruntled employee that may only work in the mailroom that never has anything positive to say.
3. Can you tell us how his statements can be verified?
The wasteful commercials air everyday on many Southern California channels. You can tune to just about any of them and watch these stupid commercials that show their trucks running through the desert..., that show employees reminding you to turn off your lights..., to tune your A/C.
Secondly, I know that person and his function and he doesn't work in the mailroom!!
Finally, his statement will be verified through SCE's earnings and stock price - which has declined from 52/sh to current 41/sh.
In addition, SCE is spending over 100k on commercials against prop 7 which is up this election year. You can watch these commercials daily as well....
Once again you are full of crap, you said "I was told that the company is in the hole (major) for several million dollars" This is a company that grossed 13 billion dollars last year, I repeat 13 billion. I'll do the percentage that is .000023% of their total revenue. Yeah, that should hurt the stock price. Get a clue. Put it in your terms You made $15,000 last year and you have to pay $3.45. Is that going to break you?
You are full of crap, it's easy to bash a company when the stock price has taken a hit. Looking fo a solid 3rd qtr with a solid 2.8% dividend yield. The stock is due to spike up to $50 once the "clean energy" fad subsides and it will. It's funny how noboady talks about "Global Warming" anymore.
If anyone is full o' crap, it must be you...
Maybe you don't know people who actually work for the company?? This is genuine information.
It is obvious, your in total denial. Go seek help by a licensed clinical physician and ask him/her why you tend to hold on to stocks when their value can't support the amount at which you purchase them....
Your are right that guy is full of shit. First think is that several million dollars of extra expenses doesn't mean a lot to EIX. However I do believe they are goign to have a problem. They rely heavily on their coal fired power plants at Midwest Generation to provide earning. Recently with the price of natural gas falling the market price of electricity has fallen. I believe their 3rd quarter revenues will fall short of expectations and they will have to revise their earning down. It won't be like they are losing money but when investment firms see the revenues and earing fall back a bit it will hurt the stock more. Their dividend is solid and support the stock but I could see this dividend going to a reyurn of 3.5-4% which could dop the stock to the lower 30's. All though this would robably take a few months. I am also very concerned that they are investing very heavily in capital projects inwhich the return will not be what they expect(windfarms) and other in which spending won't be controlled(scrubber, nox,scr additions). IMHO good luck