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While closing the acquisition of Progress Energy, Duke Energy (DUK) has also reportedly bought...

While closing the acquisition of Progress Energy, Duke Energy (DUK) has also reportedly bought the bankrupt 240 MW Campanario power plant in Chile for $86.2M. The acquisition marks Duke's entry into the country, adding to its presence in several other South American nations.
Comments (5)
  • frankf60
    , contributor
    Comments (14) | Send Message
     
    Someone want to answer this question. Had 750+ shares before merger, w div reinvest number of shares grew very quickly. Reverse split keeping dividend the same totally changes that. The equity is still there but share growth gone. retired, need dividend income. This helps me how?
    4 Jul 2012, 01:57 PM Reply Like
  • rmood00
    , contributor
    Comments (6) | Send Message
     
    Where did it say the dividend was going to be the same? My reading says it's going to be 3X per share going forward. Don't see that your're being hurt, financially, needing dividend income.
    5 Jul 2012, 07:55 AM Reply Like
  • frankf60
    , contributor
    Comments (14) | Send Message
     
    Yep, now I see the tripling of the div to $3.06 per share. Thanks.
    5 Jul 2012, 12:33 PM Reply Like
  • fi-slut
    , contributor
    Comments (111) | Send Message
     
    Frankf60

     

    Yes, the dividend has tripled - but for how long? there is huge debt and PGN's offline nuclear reactor needs refurbishing with a target restart of 2014.

     

    Beware: the price has been dropping since it started trading. I sold all of my PGN and most of my Duk at a combined price of $83/share, knowing it wouldn't sustain that as a single company. Duk froze a transfer of my remaining shares which I tried to do out of their direct deposit plan so I am stuck with one third less post -merger shares.
    If you want to hold onto your value you might consider selling at the relatively high price. I've owned both DUK and PGN for years and they never traded at 23 and 60 respectively before the merger was announced. 81 million short sales were recorded today, only the first day of trading! If you can sell it at the "high" price before it drops, you can always buy it back later at the cheaper price - and know how many shares you're getting - as well as the higher dividend. That was my plan originally but I am turning sour on the stock due to what's being called the "bait and switch" of CEO's and the resignation of PGN's Johnson, who was supposed to take the helm. DUK's Jim Rogers is now holding 4 executive positions, amont them, Chair, CEO and President. I don't recall the 4th. Good luck to you! Let us know what you end up doing.
    6 Jul 2012, 12:33 AM Reply Like
  • rmood00
    , contributor
    Comments (6) | Send Message
     
    Hey FI: With Rogers holding 4 top positions at what I am assuming is one-position pay, there ought to be plenty of extra $ for dividends!

     

    Just kidding.

     

    I kinda agree with you, the shuffle at the top, unannounced, makes me think there's some huge risk takiing with managing forward expenditures that Johnson didn't want any part in. Guess we'll just wait and see.
    6 Jul 2012, 08:45 AM Reply Like
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