1. Dividend Yield Alone... 3.8% compared to 10 year Treasury currently yielding 2.37%
2. Capital Appreciation... EXC trading a mere 13 times next year's earnings, S&P 500 avg PE 17.
3. Closing of Coal Burning Power Plants...Translates into higher electricity prices, very good for EXC's merchant side of business.
4. Rising Nat Gas Prices...As the infrastructure continues to come online, U.S. Liquid Natural Gas will be exported to areas of need/ higher prices for the commodity, such as Asia, Europe, this in turn means higher prices for electricity here in the USA, meaning higher margins for EXC's merchant business, greater profits.
5. Tax On Global Warming Gasses...Some time in the future this will be a reality and will be a bonanza for EXC's nuclear electricity producing fleet, free of carbon and methane emissions. Profit margins soar!
6. Safe Haven Characteristics... Very important in such a volatile world.
7. Monopoly In Nuclear Generation...Extremely time consuming and expensive to build new nuclear plants, much easier and less expensive to simply expand capacity of existing nuclear plants. EXC is positioned very well in this regard.
Sears was trading $150 at the time.
No surprise Sears continues it's death spiral.
What kind of deranged fool posts nonstop political garbage on a finance message board?!
Who in their right mind posts his hate for our President nonstop on a finance message board?! The guy needs some medical help immediately!
What sort of tortured soul spends his miserable existence posting nonstop his hate of our President on a finance message board?! Does this deranged fool truly believe anyone of right mind appreciates his incessant drivel? My guess is Patriot also possesses psychopathic qualities otherwise he would not continue his daily manifesto postings knowing full well his actions are strongly disapproved of.
EXC is a merchant utility which is quite different than a regulated utility in the sense EXC's fortunes are very much tied to the wholesale price of electricity on the open market. EXC's nuclear fleet generates more electricity than the customers they serve require on the regulated side of their business, they sell that excess capacity on the open market to other regulated utilities who do not generate enough electricity to serve their customers. So the open market price of electricity is critical to EXC's earnings and the direction of the stock.
Therefore the true premise of purchasing EXC's stock at these levels is the belief wholesale electricity prices will rise in the future as coal burning power plants continue to be shuttered and natural gas prices rise as the United States ramps up exporting Liquid Natural Gas to areas of great need and higher prices such as Asia and Europe where the price of the commodity is nearly 3 times higher than here in the states. Being coal and natgas are two of the three major sources of electricity generation, nuclear being the third, these changing dynamics will certainly raise the price of electricity in the future which will be a bonanza for EXC's earnings.
Another plus is some form of carbon tax is a certainty as the costs of global warming continues to rise which is a large plus for EXC's carbon free nuclear generation. And because the expense and time to build competing nuclear generation is very high, EXC possesses almost monopoly qualities in this regard. The cost to expand existing nuclear facilities generation is surprising low, another huge plus in the future.
One also has to keep in mind EXC was trading well over $50 a share last time natgas prices approached the prices presently paid in Europe and Asia, and that was when coal was still a huge player. So we have a long ways to run in the larger picture. Good luck to all.
Mgt will be cashing in very soon as they are fired for destroying the company. Quite the gig, get rich beyond your wildest dreams via criminal activity, incredible incompetency.
The most despised family in America is the face of Sears! Now what does that tell you about Sears Mgt?
Good luck spending huge sums building out your network while losing money on your phone plans. The recipe for disaster. No surprise Sprint has lost half it's market cap in the past 6 months.
My mistake...$92 seems quite a bit more profitable than $68. Nice to know AZN Mgt is always looking out for shareholders. Maybe in 10 years AZN will achieve $92 and Mgt will be vindicated.
But it seems to me $85 is quite a bit more profitable than $68
In the past decade alone PFE has spent over $200 billion acquiring other companies yet PFE's market cap is less than $185 billion. History has proven time and time again acquisitions normally do not work out in shareholders favor. Yep the lawyers and bankers make a lot of money but not the acquiring company. I can give plenty of examples of Pharma companies that turned their R&D around and are doing quite well, PFE should do the same.
The relationship between Lipitor and type 2 diabetes in women is quite small, certainly not enough to win a lawsuit. These are simply opportunists and #$%$ lawyers seeking a payday. Unfortunately this is the litigious society we reside in today.
Lowest PE in the big Pharma space, dividend yield of 3.71% (Compared to 30 Year Treasury Yield of 3.2%), PE ratio of 12.5 (S&P 500 Avg PE 17), an industry relatively immune from economic slowdowns (People need their medicine opposed to a vacation, new car). I have been strongly opposed to PFE buying out another Pharma based on the reality they would be overpaying, would rather PFE MGT focus on it's own R&D, but with that said maybe the global turmoil and stock market correction could open the door for a reasonably priced acquisition that makes sense. One has to believe PFE is going to find some support at these levels, it appears the market is going to tank again tomorrow based on the Iraq news, should be very telling to see how PFE reacts, will it finally take on safe haven characteristics?
The mess in Russia/Ukraine has caught a lot of traders by surprise, therefore selling liquid positions such as PFE to cover Long bets gone bad especially in the fixed income market. Only explanation I can think of for PFE breaking under $28. Makes no sense to be selling PFE at these levels. Creates buying opportunity.
Rather surprising PFE is performing so poorly. I realize PFE's BOD is a joke, MGT a bigger joke, and their inept R&D an even bigger joke, but PFE trading $28 represents good value.
This guy is NUTS! He spends his entire life posting political garbage on PFE's finance message board! Get a life or get some medical help!!!