Southern Company - Not Doing It's Job And Won't For The Foreseeable Future
Southern Company clearly has not been one of the leading Utilities Companies for quite some time. It is on my Hold-Cash opinion, and my Indicators remain weak fundamentally and technically the picture is not a bright one.
Southern Company has looked very anemic since April of 2013 - some eleven months ago, and that means continued caution. Despite this years recovery from $39 to its August 2013 price of $44. - I am not impressed.
My previously written articles on SO (just click) provide you the history of my forecasting, its accuracy and support for my performance. For over 50 years my management objective is to identify changing trends for my forecasting analytics. My forecasting provides me with current notes to quickly refer to on the anticipated direction of this company and its industry (Utility) peers.
My Performance SO is included in my 5-Year Table Performance for Income Allocation Model Portfolios and is available by clicking: Income Performance. I believe it accurately shares the rather positive results by first forecasting and then making wise investment decisions for my Clients. I hope you will agree.
A Special Note for Seniors & Retired Investors - Dividend Yield: 4.69%
This week's commentary on Southern Company covers all of my fundamental and technical indicators, both clear valuations and positive / negative momentum. It pays a good dividend and when it is in a up-trend it can be a very safe and productive company for Income Investors. Unfortunately this is not a time frame that is favorable for holding Southern Company.
Forecast w/ 5 Year Performance
Southern Company and other Conventional Electricity Companies are tracking the Utilities sector well and that is not a positive. There is always an end to a rally and many Utility Companies are not producing the price ascension that I demand. There are very valid reasons why and my analytics is doing its job very, very well.
Note: The below Table is for your review, questions and perhaps thoughts. If you would like to "Invest Wisely" in my Income Asset Allocation Model," please email me to open a dialogue on how I go about providing superior performance with a very low threshold of risk.
My Current Forecast is not as bright as my peer analysts seem to think! (I will be more specific upon your email request). If you own or are considering owning conventional electricity companies, the securities are becoming a mixed and rather negative bag. Southern Company is currently relatively weak technically and I have reservations about my fundamental valuation. It is on my Strong Bearish Forecast - "Warning" list.
Please have a look at the below table for further insight into my work / analytics and performance.
My Current Opinion is to Hold-Cash. Profits were taken in July and cash is my current safe haven. For me, cash is a balancing of my below three (weighted) pillars of research.
Fundamentally - ( weighting - - 40% ), my Valuations remains Moderate to Poor - however they are ascending. That produces future less than favorable valuation projections.
Technically _ ( weighting - - 35% ), my Indicators are clearly breaking down. The current mini rally from $39 is not something that should restore your confidence in the company. It's current price is $43.
Consensus Opinion - ( weighting - - 25% ): My third pillar of research is one that is always distorted to the positive by most all financial analysts. That's because they are afraid of being bearish. I am not! My articles on "Reality" are supportive my 20 year Chart.
For A Twenty Year Perspective Chart of Southern Company click here. You will see that Southern Company has taken some big hits over the years! Click here. for my long-term chart.
Here are a number of the Component Companies / Peers in the Conventional Electricity Industry Group that I focus on rather frequently if you wish to follow me: (NYSE:SO), (NYSE:EXC), (NYSE:D), (NYSE:FE), (NYSE:NRG), (NYSE:AEP), (NYSE:AES), (NYSE:CNP), (NYSE:PPL), (NYSE:DUK), (NYSE:CPN), (NYSE:CMS), (NYSE:XEL), (NYSE:PCG), (NYSE:CIG), (NYSE:ETR), (NYSE:TE), (NYSE:PEG), (NYSE:NVE), (NYSE:NEE), (NYSE:ED), (NYSE:EIX), (NYSE:NI), (NYSE:POM), (NYSE:AEE), (NU), (NYSE:WEC), (NYSE:DTE). And, more . . .
I will personally and promptly reply to any serious investor's inquiry as to my very cautious position for SO !
"Selectivity" is what I preach (along with discipline and patience) and is what separates the average investor and mutual funds from the profits that come with long-hours / hard work and "selectivity." You deserve the best possible guidance and direction and your mutual funds are not doing the job.
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A relationship between You and Your Asset Manager must be a "Win / Win" affair. You get the Performance and the Education and I get paid for my Analytics / Work and Experience.
Smile, Have Fun, "Investing Wisely,"
SO, EXC, D, FE, NRG, AEP, AES, CNP, PPL, DUK, CPN, CMS, XEL, PCG, CIG, ETR, TE, PEG, NVE, NEE, ED, EIX, NI, POM, AEE, NU, WEC, DTE