I hold 2500 shares of EDE, but is represents only about 5% of my portfolio, and I hold many other utilities, so for me, I am staying put. If things start to look better in a few months, I will likely average down and pick up another 500 shares or so. I would expect EDE will trend down a bit in the next few days, and that might be a good time to buy. I actually think management made a sound decision, and as one who has had to make tough decisions in business, I know how hard it was. Many locals own EDE, so it is a double blow to many in Joplin. . .and many in management who own stock.
I owned Dow Chemical during the big meltdown, when they were taking over Rohlm (during the 2008 crisis), and I held down to 5 from 30, but double my position at 8, and was very rewarded when I sold at 35.
I will hold what I have because I am a long term investor. However, I expect the stock to drop significantly after it goes ex-dividend on 27-May. Reasons: 1) There is nothing to hold up the stock price and the shorts will kill it. 2) With a loss of 15% of load, translated 15% of revenue the next quarters report will be bad. 3) There is no guarantee that they will be able to restart the dividend in two quarters.
I look for the stock to drop all through the summer and any recovery will depend on a dividend reinstatement.
BLAH, BLAH, THIS WILL BE AT $15 because no dividend will be restored, all you are complete morons when it comes to the market, mutual fund managers call you "roadkill" for a reason. Unreal the stupidity.
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.
I'm with you. I've got 1500 and bought another 400 at 18.90. Management seems to be doing the right things. Could have been worse. Remember with Aquila wanted to buy EDE but got shut down by the regulators?