I think it's terrible what has happened to Joplin MO and surrounding areas . It's a big blow to many companies in Joplin including EDE . No one could have forseen this . So one investor posts a message and says he'll hold here and maybe add to average down ...and someone replies to that using the term hypster I feel I had to add my thoughts . Since when it being long and being in the red translate to being a hypster ? To the investor that wrote this post....bravo . I have owned EDE off and on over the years and was stunned to see it down recently ...checking the news I saw the dividend announcement . I do not currently own any shares....but hope the company and community rebound quickly and that your investments do well . Regards .
The stock is back to close to where it was last year and had a dividend. I think it is still a little too high with all the uncertainty of insurance recovery and restoration cost, and business recovery. It is possible another Utility could make an offer if the price gets low enough. Central Vermont Shareholders are being offered $35.10 in a buyout to be completed in 6 to 12 months. I think the potential value with an eventual dividend or buyout should keep the stock above $16 or $17. Apply leverage to the 15% loss of customer and consider debt it hits like double. So take 70% of the old price it was trading at .70 X $23.00 = $16.10 Todays Minimum Value. Any insurance recovery or government aid might push it up to $16.50 estimate.
You and I have arrived at a $16.50 price although we derived that price differently. Since I posted my anticipated price, some research and after some sole searching I think even at the $16.50 there is risk. Two things that bother me about EDE are (1) the move to participate in Nuclear Power and (2) history shows that when communities like Joplin are destroyed only approximately half the people stay and/or return. In the case of the latter, one can make the assumption there will be a permanent 71/2% reduction in revenues and the dividend will continue to be stressed for a years to come. Getting back to .32 dividend will depend solely upon regulator approval and at a time when several increases have already been approved.