You too! We need some colder weather for at least a few weeks. LNG exports still a few years away which should be the saving grace long term. El Nino is making this a rough winter for NG pricing.
This stock is so thinly traded, that is someone unloads a big positions it makes a big impact. The volume was 3x normal Friday.
Morningstar comment on CNP 10 days ago:
We are reaffirming our narrow moat and stable moat trend
ratings and $23 fair value estimate after CenterPoint
Energy reported strong 2015 third-quarter adjusted
earnings of $0.34 per share versus $0.30 in the same
period last year.
Looks like good support in the $10-$11 area. Consolidation here then higher into year end as NG prices move sideways to higher.
I understand and wished I had waited until $17 rather than $18 to pull the trigger, however their cash flow is quite strong which isn't really reflected in the earnings numbers, so dividend coverage is really not an issue. The Houston economy is much more diversified and their electric business is transmission not retail, so I don't think this will be an issue. This company is not well understood since its not a traditional utilities, but a wires and pipes company. The core regulated utility type business is strong and generates consistenly strong cash flows, but the wild card is ENBL and income from this mid stream venture is down somewhat which I believe is the cause for punishment here. OGE is an equal partner in ENBL, but only has a 3.5% dividend, also ENBL only generates about 25% of CNP's profit. I think at a nearly 6% secure dividend CNP is very undervalued with a very valuable asset base. CNP is collateral damage in the MLP market meltdown which is way overdone at this point.
Seems like an easy 10% return at these levels. Thin float since CNP and OGE own most of the shares, as a result, more intraday price volatility, but seems to have found a home in the $10-$11 range.
Fed minutes just released. I would say they are "ute friendly" expressing concern over long term growth and that "normal" rates are still near zero.
Sorry about your losses. We may be marking the bottom here for the third time since the jobs report. Interesting that ENBL has remained stable over the last month, but OGE and CNP got crushed.
10 year bond is only up one tick at this time, so if Fed increases short term rates, but long rates remain low, won't this hurt NIMs?
Fed minutes at 1pm will be important short term, CNP is fine on cash flow and NG prices have been increased somewhat since last week's inventory. Also, the NWS forecast for a colder and wetter than normal winter over most on CNP's service area should be helpful. We're down now due to a lot of utility ETF shorting pre-Fed, but the 10 year yield has remained quite low despite all the talk of a 1/4 point rise by the Fed in December. In the short term, the market listens to the Fed, but long term, it obeys the bond market. The bond market is saying that rates aren't going up much and the oversold condition of the utes overall is way overdone. Next year, the Fed's hands will be tied with an election upcoming, so we may get a 1/4 point hike in Deember, but that will probably be it. CNP is a screaming buy at this level provided that it holds these lows post Fed minutes release.
Time for management to put this company up for sale. The parts are worth in the $23-25 PPS range.
Best measures of world economic health, BDI (Baltic Dry Index) and copper continue to falter. Fed hikes will destroy US exporters and emerging economies. Also, US economy is not that strong due to wealth disparities. All things considered, I like being removed from consumer discretionary items and exposed to dividend paying stocks with regulated cash flows, or being short selective sectors.
A good time to buy now. Most commodities are lower across the board. Dr. Copper points to weaker growth as it drops again today. Fed rate rise will be modest (if at all) remember there is another jobs report and other data before the December meeting.
Paranoia over jobs report tomorrow, most stocks with yields went down. If the report is strong, we'll open down big as the fear of a .25 point hike is too much for the algos, so they will sell down CNP with a 5.4% return. Conversely, a weak report and we spike.
Right now, it's looking smart by the shorts. I just don't understand CDE's underperformace in this sector. Balance sheet and cash flow are not bad compared to many peers that are outperforming CDE.