Saks Inc (NYSE: SKS), Elan Corp. (NYSE: ELN), U-Store-It Trust (NYSE: YSI), FirstEnergy Corp. (NYSE: FE), Focus Media (NASDAQ: FMCN) and Federal Realty Investment Trust (NYSE: FRT) upgraded by analysts.
Saks Inc (NYSE: SKS) was upgraded by Credit Suisse (NYSE:CS) from an “Underperform” rating to a “Neutral” rating.
Elan Corp. (ELN) was upgraded by Credit Suisse (CS) from a “Neutral” rating to an “Outperform” rating.
U-Store-It Trust (YSI) was upgraded by BMO Capital Markets from a “Market Perform” rating to an “Outperform” rating.
FirstEnergy Corp. (FE) was upgraded by BMO Capital Markets from a “Market Perform” rating to an “Outperform” rating.
Focus Media (FMCN) was upgraded by Deutsche Bank (NYSE:DB) from a “Hold” rating to a “Buy” rating.
Federal Realty Investment Trust (FRT) was upgraded by Raymond James (NYSE:RJF) from a “Market Perform” rating to an “Outperform” rating.
Showing posts with label FirstEnergy. Show all posts
Showing posts with label FirstEnergy. Show all posts
Thursday, August 25, 2011
Friday, August 12, 2011
Exelon (EXC) (SPG) (SXT) (BEBE) (ICE) (FE) Upgraded
Exelon Co. (NYSE: EXC), Simon Properties (NYSE: SPG), Sensient Technologies Corp (NYSE: SXT), Bebe stores (NASDAQ: BEBE), IntercontinentalExchange (NYSE: ICE) and FirstEnergy Corp. (NYSE: FE) upgraded by analysts.
Exelon Co. (EXC) was upgraded by Macquarie from a “Neutral” rating to an “Outperform” rating.
Simon Properties (SPG) was upgraded by UBS AG (NYSE:UBS) from a “Neutral” rating to a “Buy” rating.
Sensient Technologies Corporation (SXT) was upgraded by Gabelli to a “Buy” rating.
Bebe Stores (BEBE) was upgraded by Raymond James (NYSE:RJF) from an “Underperform” rating to a “Market Perform” rating.
IntercontinentalExchange (ICE) was upgraded by Goldman Sachs (NYSE:GS) from a “Neutral” rating to a “Buy” rating.
FirstEnergy Corp. (FE) was upgraded by Macquarie from a “Neutral” rating to an “Outperform” rating.
Exelon Co. (EXC) was upgraded by Macquarie from a “Neutral” rating to an “Outperform” rating.
Simon Properties (SPG) was upgraded by UBS AG (NYSE:UBS) from a “Neutral” rating to a “Buy” rating.
Sensient Technologies Corporation (SXT) was upgraded by Gabelli to a “Buy” rating.
Bebe Stores (BEBE) was upgraded by Raymond James (NYSE:RJF) from an “Underperform” rating to a “Market Perform” rating.
IntercontinentalExchange (ICE) was upgraded by Goldman Sachs (NYSE:GS) from a “Neutral” rating to a “Buy” rating.
FirstEnergy Corp. (FE) was upgraded by Macquarie from a “Neutral” rating to an “Outperform” rating.
Tuesday, May 10, 2011
Price Targets on (FE) (DIOD) (FLR) (HOGS) (IILG) Updated
Price targets on FirstEnergy Corp. (NYSE: FE), Diodes (NASDAQ: DIOD), Fluor Co. (NYSE: FLR), ZHONGPIN INC. (NASDAQ: HOGS) and Interval Leisure Group Inc (NASDAQ: IILG) updated by analysts.
Citigroup (NYSE:C) raised their price target on FirstEnergy Corp. (FE) from $36.00 to $41.00. They have a “hold” rating on the company. They cited valuation as the catalyst behind their call.
Longbow Research raised their price target on Diodes (DIOD) from $37.00 to $41.00. They have a “buy” rating on the company.
FBR Capital cut their price target on Fluor Co. (FLR) from $84.00 to $81.00. They have an “outperform” rating on the company.
Maxim Group raised their price target on ZHONGPIN INC. (HOGS) from $18.00 to $20.00. They have a “buy” rating on the company.
FBR Capital cut their price target on Interval Leisure Group Inc (IILG) from $21.00 to $19.00. They have an “outperform” rating on the company.
Citigroup (NYSE:C) raised their price target on FirstEnergy Corp. (FE) from $36.00 to $41.00. They have a “hold” rating on the company. They cited valuation as the catalyst behind their call.
Longbow Research raised their price target on Diodes (DIOD) from $37.00 to $41.00. They have a “buy” rating on the company.
FBR Capital cut their price target on Fluor Co. (FLR) from $84.00 to $81.00. They have an “outperform” rating on the company.
Maxim Group raised their price target on ZHONGPIN INC. (HOGS) from $18.00 to $20.00. They have a “buy” rating on the company.
FBR Capital cut their price target on Interval Leisure Group Inc (IILG) from $21.00 to $19.00. They have an “outperform” rating on the company.
Ratings on (ALKS) (BAP) (COLB) (CPN) (FE) Upgraded
Ratings on Alkermes Inc. (NASDAQ: ALKS), Credicorp Ltd. (NYSE: BAP), Columbia Banking (NASDAQ: COLB), Calpine (NYSE: CPN) and FirstEnergy Corp. (NYSE: FE) upgraded by analysts.
Leerink upgraded Alkermes Inc. (ALKS) to an “outperform” rating.
UBS AG (NYSE:UBS) upgraded Credicorp Ltd. (BAP) to a “buy” rating.
McAdams Wright Ragen upgraded Columbia Banking (COLB) to a “buy” rating. They have a price target of $22.00 on the company.
Dahlman Rose upgraded Calpine (CPN) from a “hold” rating to a “buy” rating. They have a price target of $20.00 on the company.
Wells Fargo & Co. (NYSE:WFC) upgraded FirstEnergy Corp. (FE) from a “market perform” rating to an “outperform” rating.
Leerink upgraded Alkermes Inc. (ALKS) to an “outperform” rating.
UBS AG (NYSE:UBS) upgraded Credicorp Ltd. (BAP) to a “buy” rating.
McAdams Wright Ragen upgraded Columbia Banking (COLB) to a “buy” rating. They have a price target of $22.00 on the company.
Dahlman Rose upgraded Calpine (CPN) from a “hold” rating to a “buy” rating. They have a price target of $20.00 on the company.
Wells Fargo & Co. (NYSE:WFC) upgraded FirstEnergy Corp. (FE) from a “market perform” rating to an “outperform” rating.
Tuesday, May 3, 2011
Dividends from (FE) (AEP) (DUK) (PGN) (XLU)
A quick look at dividends from FirstEnergy Corporation (NYSE: FE), American Electric Power Co., Inc. (NYSE: AEP), Duke Energy Corporation (NYSE: DUK), Progress Energy, Inc. (NYSE: PGN); all American utility companies.
Dividends continue to attact investors in an ongoing volatile and unpredictable market. Among companies offering dividends, utility companies have been among the sectors offering significant and predictable dividends over the years, no matter what type of business cycle that is occurring at the time.
The "boring" utility sector has actually been plodding along nicely, as many have been quietly hitting 52-week highs. That of course makes them a little more expensive to get into, but a small price to pay for income and peace of mind for certain types of investors.
American Electric Power Co., Inc. (AEP) offers a dividend of 5 percent at this time. For those thinking of getting into it for that purpose, keep in mind it may not rasie their dividend any time soon, as it recently raised its dividend after having it sit there from November 2007 to February 2010. Expectations are the next dividend boost will bring it to $0.47 or $0.48 a quarter, up from the current $0.46 a quarter.
Duke Energy Corporation (DUK) hasn't attracted investors much since it spun of Spectra, but they pay out about a 5.2 percent yield. They are in the midst of merging with Progress Energy, Inc. (PGN), which itself carries a yield of almost 5.2 percent. The current payout of $0.245 is expected to be bossted sometime soon, although that's not a certainty.
FirstEnergy Corporation (FE) pays out about 5.3 percent in dividend yields, even as it hit a 52-week high of $41.77 recently. It's unlikely FirstEnergy will add to its dividend in a big way soon, but as it is it offers a decent return for those looking for income and safety. What's attractive about FE is it's far below its pre-recession share price high, which makes it a potential growth story as well.
For those seeking less exposure to individual stocks while looking for dividend income, the Utilities Select Sector SPDR (XLU) ETF could be up your alley. It has also recently hit a 52-week high, and offers an approximate return of 4.0 percent.
Dividends continue to attact investors in an ongoing volatile and unpredictable market. Among companies offering dividends, utility companies have been among the sectors offering significant and predictable dividends over the years, no matter what type of business cycle that is occurring at the time.
The "boring" utility sector has actually been plodding along nicely, as many have been quietly hitting 52-week highs. That of course makes them a little more expensive to get into, but a small price to pay for income and peace of mind for certain types of investors.
American Electric Power Co., Inc. (AEP) offers a dividend of 5 percent at this time. For those thinking of getting into it for that purpose, keep in mind it may not rasie their dividend any time soon, as it recently raised its dividend after having it sit there from November 2007 to February 2010. Expectations are the next dividend boost will bring it to $0.47 or $0.48 a quarter, up from the current $0.46 a quarter.
Duke Energy Corporation (DUK) hasn't attracted investors much since it spun of Spectra, but they pay out about a 5.2 percent yield. They are in the midst of merging with Progress Energy, Inc. (PGN), which itself carries a yield of almost 5.2 percent. The current payout of $0.245 is expected to be bossted sometime soon, although that's not a certainty.
FirstEnergy Corporation (FE) pays out about 5.3 percent in dividend yields, even as it hit a 52-week high of $41.77 recently. It's unlikely FirstEnergy will add to its dividend in a big way soon, but as it is it offers a decent return for those looking for income and safety. What's attractive about FE is it's far below its pre-recession share price high, which makes it a potential growth story as well.
For those seeking less exposure to individual stocks while looking for dividend income, the Utilities Select Sector SPDR (XLU) ETF could be up your alley. It has also recently hit a 52-week high, and offers an approximate return of 4.0 percent.
Ratings on (FE) (GM) (HERO) (ONB) Upgraded by Analysts
Ratings on FirstEnergy Corp. (NYSE: FE), General Motors (NYSE: GM), Hercules Offshore, Inc. (NASDAQ: HERO) and Old National Bancorp (NYSE: ONB) were upgraded today by analysts.
Bank of America (NYSE:BAC) upgraded FirstEnergy Corp. (FE) to a “neutral” rating. They have a price target of $42.00 on the company.
UBS AG (NYSE:UBS) upgraded General Motors (GM) from a “neutral” rating to a “buy” rating. They have a price target of $42.00 on the company.
FBR Capital upgraded Hercules Offshore, Inc. (HERO) from an “underperform” rating to an “outperform” rating. They have a price target of $8.50 on the company.
SunTrust (NYSE:STI) upgraded Old National Bancorp (ONB) from a “neutral” rating to a “buy” rating.
Bank of America (NYSE:BAC) upgraded FirstEnergy Corp. (FE) to a “neutral” rating. They have a price target of $42.00 on the company.
UBS AG (NYSE:UBS) upgraded General Motors (GM) from a “neutral” rating to a “buy” rating. They have a price target of $42.00 on the company.
FBR Capital upgraded Hercules Offshore, Inc. (HERO) from an “underperform” rating to an “outperform” rating. They have a price target of $8.50 on the company.
SunTrust (NYSE:STI) upgraded Old National Bancorp (ONB) from a “neutral” rating to a “buy” rating.
Monday, May 2, 2011
Dividend Yields for (POM) (FE) (DUK) (AEE) (PGN)
Indicated dividend yields for Standard & Poor's 500 Index companies Pepco Holdings Inc (POM), FirstEnergy Corp (FE), Duke Energy Corp (DUK), Ameren Corp (AEE) and Progress Energy Inc (PGN).
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
Pepco Holdings Inc (POM) has a dividend yield of 5.60 percent on a declared dividend of $0.27. The payout ratio is 432.0 percent.
FirstEnergy Corp (FE) has a dividend yield of 5.50 percent on a declared dividend of $0.55. The payout ratio is 90.4 percent.
Duke Energy Corp (DUK) has a dividend yield of 5.25 percent on a declared dividend of $0.24. The payout ratio is 76.5 percent.
Ameren Corp (AEE) has a dividend yield of 5.25 percent on a declared dividend of $0.39. The payout ratio is 177.6 percent.
Progress Energy Inc (PGN) has a dividend yield of 5.23 percent on a declared dividend of $0.62. The payout ratio is 143.5 percent.
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
Pepco Holdings Inc (POM) has a dividend yield of 5.60 percent on a declared dividend of $0.27. The payout ratio is 432.0 percent.
FirstEnergy Corp (FE) has a dividend yield of 5.50 percent on a declared dividend of $0.55. The payout ratio is 90.4 percent.
Duke Energy Corp (DUK) has a dividend yield of 5.25 percent on a declared dividend of $0.24. The payout ratio is 76.5 percent.
Ameren Corp (AEE) has a dividend yield of 5.25 percent on a declared dividend of $0.39. The payout ratio is 177.6 percent.
Progress Energy Inc (PGN) has a dividend yield of 5.23 percent on a declared dividend of $0.62. The payout ratio is 143.5 percent.
Thursday, January 20, 2011
The Southern Company (NYSE:SO), TECO Energy (NYSE:TE), FirstEnergy (NYSE:FE) Top Utility Picks of FBR
The Southern Company (NYSE:SO), TECO Energy (NYSE:TE) and FirstEnergy (NYSE:FE) are the top utility companies in 2011, according to FBR, measuring their decision by the strongest outlook and probability of upward revisions.
FBR says, "As is usual at this time of year, fourth-quarter earnings will be greeted with a big yawn. Ears will perk up for 2011 guidance and the longer-term outlook for electric utilities. An upward revision in long-term earnings for some integrated names is finally possible due to the tick up in power prices that followed the third quarter. Regulated utilities will introduce their capital budgets, which we believe will remain robust with billions and billions in expenditures (our homage to Carl Sagan). Utilities that introduce long-term capital budgets, however, will face the conundrum of budgeting for upcoming EPA regulations. As we enter this earnings season, we have a positive bias for utilities that face a robust 2011 outlook and possible upward earnings revisions, including The Southern Company (SO)(Market Perform), TECO Energy, Inc. (TE)(Market Perform), and FirstEnergy Corp. (FE)(Market Perform). That said, TE and FE stocks may already be pricing in this more robust outlook. We are more cautious on Public Service Enterprise Group Incorporated or "PSEG" (NYSE:PEG)(Market Perform) because consensus expectations for 2011 still seem too high."
The Southern Company was trading at $38.50, up $0.05, or 0.13 percent, as of 12:46 PM EST. TECO Energy was trading at $18.25, up $0.09, or 0.52 percent. FirstEnergy was trading at $39.29, gaining $0.47, or 1.21 percent.
FBR says, "As is usual at this time of year, fourth-quarter earnings will be greeted with a big yawn. Ears will perk up for 2011 guidance and the longer-term outlook for electric utilities. An upward revision in long-term earnings for some integrated names is finally possible due to the tick up in power prices that followed the third quarter. Regulated utilities will introduce their capital budgets, which we believe will remain robust with billions and billions in expenditures (our homage to Carl Sagan). Utilities that introduce long-term capital budgets, however, will face the conundrum of budgeting for upcoming EPA regulations. As we enter this earnings season, we have a positive bias for utilities that face a robust 2011 outlook and possible upward earnings revisions, including The Southern Company (SO)(Market Perform), TECO Energy, Inc. (TE)(Market Perform), and FirstEnergy Corp. (FE)(Market Perform). That said, TE and FE stocks may already be pricing in this more robust outlook. We are more cautious on Public Service Enterprise Group Incorporated or "PSEG" (NYSE:PEG)(Market Perform) because consensus expectations for 2011 still seem too high."
The Southern Company was trading at $38.50, up $0.05, or 0.13 percent, as of 12:46 PM EST. TECO Energy was trading at $18.25, up $0.09, or 0.52 percent. FirstEnergy was trading at $39.29, gaining $0.47, or 1.21 percent.
Monday, January 10, 2011
DOJ Clears FirstEnergy (NYSE:FE), Allegheny Energy (NYSE:AYE) Merger
FirstEnergy Corp. (NYSE:FE) and Allegheny Energy, Inc. (NYSE:AYE) were contacted by the U.S. Department of Justice telling them their proposed merger was cleared by them.
Anthony J. Alexander, President and Chief Executive Officer of FirstEnergy "We are pleased to have completed the DOJ review process - another important step in our merger with Allegheny Energy."
"With both key federal clearances now in hand, we're making excellent progress toward this important combination," said Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy.
First Energy closed Friday at $38.25, gaining $0.09, or 0.24 percent. Allegheny Energy closed at $25.15, gaining $0.10, or 0.40 percent.
Anthony J. Alexander, President and Chief Executive Officer of FirstEnergy "We are pleased to have completed the DOJ review process - another important step in our merger with Allegheny Energy."
"With both key federal clearances now in hand, we're making excellent progress toward this important combination," said Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy.
First Energy closed Friday at $38.25, gaining $0.09, or 0.24 percent. Allegheny Energy closed at $25.15, gaining $0.10, or 0.40 percent.
Monday, December 20, 2010
FirstEnergy (NYSE:FE), PPL Corporation (NYSE:PPL), Allegheny Energy (NYSE:AYE) Pressured by Dark Spread Compression
Citing challenges from dark spread compression in 2011, FBR Capital sees FirstEnergy (NYSE:FE), PPL Corporation (NYSE:PPL) and Allegheny Energy (NYSE:AYE) possibly being under pressure next year.
FBR said, "As we look to 2011, we believe the multiyear relative outperformance streak for regulated names could come to an end due to the impact of rising interest rates, and we continue to favor growth-oriented low “duration” names such as PG&E (NYSE:PCG)(Outperform/Top Pick) and SCANA (NYSE:SCG)(Outperform). For integrated names, the worst of the stock price adjustment could be behind us, as they are imputing roughly $4.45/MMBtu natural gas and offer attractive dividend yields compared to regulated utilities. Expectations for power market recovery will likely improve in 2011, driven by EPA regulations, more coal retirements, a promising capacity auction in PJM, and an improved natural gas outlook. Within our integrated coverage universe, we prefer Entergy Corporation (NYSE:ETR)(Outperform). While it is minimally exposed to power market tightening via coal retirements, it appears oversold, has a secure dividend in our opinion, and could catch a bid from any natural gas price appreciation."
Integrated Utilities Opinion
"Healing process has begun for integrated utilities. The worst of the natural gas and power price adjustments is now likely behind us. However, based on the outlook from our coal and gas teams, dark spread compression could still remain a theme in 2011, pressuring coal-heavy names such as FirstEnergy Corp. (Market Perform) and PPL Corporation (Market Perform). Also in the group is Allegheny Energy, Inc. (Not Rated) (pro forma). However, the rationalization in coal generation has begun, driven by forthcoming Environmental Protection Agency (EPA) regulations and dwindling Eastern coal supply. In addition, power prices seem to be ticking up at PJM Interconnection (PJM), perhaps indicating that the higher cost of coal burn is being reflected in power markets. We see no indication in the 2013 PJM forwards that widespread plant retirements are being anticipated."
FirstEnergy was trading at $36.37, up $0.09, or 0.25 percent, as of 12:21 PM EST. PPL Corporation was trading at $26.01, down $0.02, or 0.08 percent. Allegheny Energy was trading at $ 23.75, up $0.08, or 0.34 percent.
FBR said, "As we look to 2011, we believe the multiyear relative outperformance streak for regulated names could come to an end due to the impact of rising interest rates, and we continue to favor growth-oriented low “duration” names such as PG&E (NYSE:PCG)(Outperform/Top Pick) and SCANA (NYSE:SCG)(Outperform). For integrated names, the worst of the stock price adjustment could be behind us, as they are imputing roughly $4.45/MMBtu natural gas and offer attractive dividend yields compared to regulated utilities. Expectations for power market recovery will likely improve in 2011, driven by EPA regulations, more coal retirements, a promising capacity auction in PJM, and an improved natural gas outlook. Within our integrated coverage universe, we prefer Entergy Corporation (NYSE:ETR)(Outperform). While it is minimally exposed to power market tightening via coal retirements, it appears oversold, has a secure dividend in our opinion, and could catch a bid from any natural gas price appreciation."
Integrated Utilities Opinion
"Healing process has begun for integrated utilities. The worst of the natural gas and power price adjustments is now likely behind us. However, based on the outlook from our coal and gas teams, dark spread compression could still remain a theme in 2011, pressuring coal-heavy names such as FirstEnergy Corp. (Market Perform) and PPL Corporation (Market Perform). Also in the group is Allegheny Energy, Inc. (Not Rated) (pro forma). However, the rationalization in coal generation has begun, driven by forthcoming Environmental Protection Agency (EPA) regulations and dwindling Eastern coal supply. In addition, power prices seem to be ticking up at PJM Interconnection (PJM), perhaps indicating that the higher cost of coal burn is being reflected in power markets. We see no indication in the 2013 PJM forwards that widespread plant retirements are being anticipated."
FirstEnergy was trading at $36.37, up $0.09, or 0.25 percent, as of 12:21 PM EST. PPL Corporation was trading at $26.01, down $0.02, or 0.08 percent. Allegheny Energy was trading at $ 23.75, up $0.08, or 0.34 percent.
Monday, December 13, 2010
Upside for FirstEnergy Corp. (NYSE:FE), PPL Corporation (NYSE:PPL) Says FBR
Commenting on energy policy and the impact on coal and coal retirements, FBR Capital says they see upside for FirstEnergy Corp. (NYSE:FE) and PPL Corporation (NYSE:PPL).
FBR said, "A forthcoming round of EPA regulations targeting unscrubbed coal plants could affect approximately 100 GW of operating capacity and could lead to an acceleration in coal retirements and further investment in environmental control equipment. Based on our discussions with utilities and environmental regulators, however, we believe that the most likely path to compliance is not a step-function change in coal capacity but a broad-based adaptation by the industry using all available means. In addition, political pushback, EPA bandwidth issues, legal challenges, and reliability concerns could slow the pace of coal retirements. We envision a base-case scenario in which 45 GW of coal capacity is retired (including 12 GW announced), varying widely between 30 GW and 70 GW, depending on the level of natural gas prices and the severity of proposed rules. Up to 60 GW of capacity could eventually be scrubbed. All-in industry costs could exceed $80 billion, 75%–80% of which will likely be borne by regulated utilities. The main beneficiaries that could see their earnings boosted are large coal-heavy regulated utilities. While power markets are likely to tighten gradually by 2014 under our current assumptions, we see plausible potential upside for FirstEnergy Corp. (Market Perform) and PPL Corporation (Market Perform), selling into PJM Interconnection (PJM) or The Midwest Independent Transmission System Operator, Inc. (MISO)."
First Energy was trading at $35.80, up $0.15, or 0.42 percent, as of 11:42 AM EST. PPL was trading at $25.42, up $0.17, or 0.67 percent.
FBR said, "A forthcoming round of EPA regulations targeting unscrubbed coal plants could affect approximately 100 GW of operating capacity and could lead to an acceleration in coal retirements and further investment in environmental control equipment. Based on our discussions with utilities and environmental regulators, however, we believe that the most likely path to compliance is not a step-function change in coal capacity but a broad-based adaptation by the industry using all available means. In addition, political pushback, EPA bandwidth issues, legal challenges, and reliability concerns could slow the pace of coal retirements. We envision a base-case scenario in which 45 GW of coal capacity is retired (including 12 GW announced), varying widely between 30 GW and 70 GW, depending on the level of natural gas prices and the severity of proposed rules. Up to 60 GW of capacity could eventually be scrubbed. All-in industry costs could exceed $80 billion, 75%–80% of which will likely be borne by regulated utilities. The main beneficiaries that could see their earnings boosted are large coal-heavy regulated utilities. While power markets are likely to tighten gradually by 2014 under our current assumptions, we see plausible potential upside for FirstEnergy Corp. (Market Perform) and PPL Corporation (Market Perform), selling into PJM Interconnection (PJM) or The Midwest Independent Transmission System Operator, Inc. (MISO)."
First Energy was trading at $35.80, up $0.15, or 0.42 percent, as of 11:42 AM EST. PPL was trading at $25.42, up $0.17, or 0.67 percent.
Tuesday, November 23, 2010
FirstEnergy Corp. (NYSE:FE) May Get Less for Peak Mine
Analysis from FBR Capital says FirstEnergy Corp. (NYSE:FE) could lose some of the value of their Peak Mine when they decide to sell it, and that the sale may be accelerated because of it being placed on pattern of violation (POV) status
FBR said, "The Signal Peak mine has been placed on potential pattern of violation (POV) status. If this status is not remedied, FirstEnergy may be required to shut down this mine and take a write down. To be removed from POV status, a mine must undergo an inspection without any Significant and Substantial (S&S) violations, which sets a high bar considering the wide definition of this term. Alternatively,
FirstEnergy could sell the mine since a change in ownership would be grounds for removing it from POV status. Recall that a sale of Signal Peak is already contemplated as part of FirstEnergy’s plan to divest non-core assets. Given this new development, momentum for a sale is likely to accelerate but could pressure the consideration received. In its third quarter call, FirstEnergy indicated that the mine could be sold in the first quarter of 2011 or “not too much beyond that,”
depending on the ramp up in production levels. Since the POV letter was just issued, we have not had an opportunity to speak with FirstEnergy on this development (the caveat in our interpretation)."
FirstEnergy closed at $35.95 on Monday, falling $0.30, or 0.83 percent.
FBR said, "The Signal Peak mine has been placed on potential pattern of violation (POV) status. If this status is not remedied, FirstEnergy may be required to shut down this mine and take a write down. To be removed from POV status, a mine must undergo an inspection without any Significant and Substantial (S&S) violations, which sets a high bar considering the wide definition of this term. Alternatively,
FirstEnergy could sell the mine since a change in ownership would be grounds for removing it from POV status. Recall that a sale of Signal Peak is already contemplated as part of FirstEnergy’s plan to divest non-core assets. Given this new development, momentum for a sale is likely to accelerate but could pressure the consideration received. In its third quarter call, FirstEnergy indicated that the mine could be sold in the first quarter of 2011 or “not too much beyond that,”
depending on the ramp up in production levels. Since the POV letter was just issued, we have not had an opportunity to speak with FirstEnergy on this development (the caveat in our interpretation)."
FirstEnergy closed at $35.95 on Monday, falling $0.30, or 0.83 percent.
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