Stress what stress? she has made millions and millions are on the way no matter what happens. I would love to have her problem.
This is what media and analysts are good at. Creating panic, doom and gloom.
Too much is made out of 2 recent plant sales with 525 MW and 352 MW capacities for a total of 138 million. Some analysts are even extrapolating this and arriving at some absurdly low number for rest if the assets.
They conveniently ignore (and some intentionally) the fact that these two plants with total capacity of 877 MW ONLY produced 10.5 million EBITDA for the company. In other words these are clunkers with too high operating cost for the company and brings very little economic benefit to the company.
If you consider that they have said that they will generate at least 3 billion adjusted EBITDA in 2016, you can see that the sold capacity produced 0.35% (less than 1%) of the total projected 2016 EBITDA.
Now if you extrapolate those numbers correctly which many analysts fail or intentionally choose to do,
10.5 million EBITDA sold for 138 million, so they sold assets at 13 times EBITDA which in my book is unbelievably good deal.
If they manage to sell 3 billion of projected 2016 EBITDA at the same rate, they could generate 3 X 13
= 39 billion dollars !
Compare that with current Enterprise value of NRG at 20.75 billion.
Now tell me if those were fire sale?
Lets see what has changed
1. Increasing stake in NPGL from 20% to 50% for $136 million
2. Oil down ~3%
3. Downgrade by Argus
4. a lot of panic, fear
Now the good
1. Reaffirned 2016 cash flow ~ 5 billion
Based on these events you can decide if this deserves 15 billion market cap loss
I wish this is what BOD considered
If they continue on the current path, shareholders are at the mercy of BABA stock price.
Any turnaround, if MM ever succeeds in, is still years away, so in the meantime shareholders suffer.
A utility behemoth with 15 billion annual revenue, 3 billion in EBITDA (recently reaffirmed), 4 billion in liquidity, hard assets worth over 30 billion. Just because CEO resigned (over low stock price) and they sold less than 2% of assets at seemingly low price...does this sound like a big disaster?
Where are the bonds trading?
i have spent last 4 years trying to understand this market and has failed to do so. US markets are rigged. The HFT traders call the shots. Earnings/economy has nothing to do with the stock prices.