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As stocks move broadly higher, utilities (XLU) lag following downgrades of Exelon (EXC -7.1%)...

As stocks move broadly higher, utilities (XLU) lag following downgrades of Exelon (EXC -7.1%) and First Energy (FE -6.7%) by Deutsche Bank based on "the ugly reality of the 2016-17 RPM auction results." The firm sees downside in all integrated power names as the "uncertain path to a power market recovery forces investors to reconsider the multiples paid for commodity cyclical power generation assets." (earlier)
Comments (4)
  • Mookeyser
    , contributor
    Comments (2) | Send Message
     
    Analysts can see 4 years into the future, but they missed all the hubbub over Worldcom and Enron. These analysts have too much power, beware the mindset of certainty because the future can change reality.
    28 May 2013, 12:42 PM Reply Like
  • alohafalls
    , contributor
    Comments (62) | Send Message
     
    God is great, beer is good and people(analysts) are crazy.
    28 May 2013, 01:21 PM Reply Like
  • maddynuke
    , contributor
    Comments (287) | Send Message
     
    And they can correlate the PJM low bidding for a week and project 4 years into the future too!! Yikes. It is a good day to pick up some more EXC (I am already long on EXC) and to pick up FE.
    Deutche Bank rating somehow holds the key to this lemming race to the sea, and it is based on PJM forecasts, yet PEG is positive. Go figure.
    28 May 2013, 01:56 PM Reply Like
  • Jubal04
    , contributor
    Comments (117) | Send Message
     
    With 5,914.5 MW of new Combined cycle gas generation and 1,382 new MW of Combustion turbines in the 2015/16 report, I hope someone is digging ditches for pipeline and pouring concrete for foundations.
    28 May 2013, 02:03 PM Reply Like
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