Scana: Priced For Perfection Despite Massive Uncertainty

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About: SCANA Corporation (SCG)
by: CashFlow Hunter
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CashFlow Hunter
Long/short equity, special situations, debt, Deep Value
Summary

Abandonment of nuclear plant under construction is a dramatic and unexpected move that is meeting political uproar.

Company guidance post abandonment anticipates the best of all possible outcomes.

Material earnings downside is possible depending on regulatory outcomes.

Core business outside the nuclear plant outcome is mediocre.

Company trading at historically high multiple.

The situation around Scana’s (SCG) abandonment of its nuclear plant under construction is enormously complicated with many potential outcomes. Given the multitude of unknowns, I am going to keep this article at higher