I find it insightful when appraising the prospects of investing in Tokyo Electric Power Company or TEPCO (OTCPK:TKECF) to study the fortunes of another company that once faced and overcame similar challenges, namely the General Public Utilities Corporation or GPU, to make some solid assumptions on TEPCO's condition within the next two years, and to use two different valuation approaches to predict where their stock should and will soon trade.
GPU's Three Mile Island Experience
Following the partial, INES Level 5, meltdown of Three Mile Island's (TMI's) Unit 2 on March 28, 1979, power plant owner GPU's stock suffered a rapid loss in value. Within 47 days, GPU's stock lost more than 50% of its value, falling from...
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