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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8824  
Subject: Excelon Date: 10/25/2012 3:49 PM
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http://stockcharts.com/freecharts/gallery.html?EXC

Check the chart, looking for $34.5 to $35 to pick up my first position in this. Yielding 5.8% at today's price. Thoughts?
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Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7600 of 8824
Subject: Re: Excelon Date: 10/25/2012 4:33 PM
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You really need to conduct your own due diligence on the equities in which you are interested in investing. The dividend is NOT everything. You need to check the fundamentals. Query: Why has the stock lost so much value?

Donna

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Author: hondodog Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7601 of 8824
Subject: Re: Excelon Date: 10/25/2012 4:38 PM
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EXC profits are being constrained in part by low cost NG generation (pegged electric retail price), and the merger costs from Constellation Energy last year.

in the near term, improvements may be difficult to time, but 3-5 yrs out, i expect to see reasonable profit growth return (along with stock price)

in the meantime, i am reinvesting the dividends, remaining patient. because i am fully invested as a percentage of my portfolio, i am not adding new shares, just dribbling in the dividends.

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Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7602 of 8824
Subject: Re: Excelon Date: 10/26/2012 12:09 PM
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As this is the Dividend Growth Investing board, it's, I think, worth noting that Excelon last raised its dividend in 2008. Furthermore, there is no expectation that the dividend will be raised anytime soon.

Earnings have dropped off significantly and are expected to be less than half what they were in 2007 for 2012. In fact, earnings are likely to be shy of the dividend distribution. This is expected to be a one-time occurrence because earnings are predicted to pick up again for 2013, and, consequently the dividend is probably safe.

Next year costs from the merger with Constellation should start to be outstripped by savings and additional operating income. But, it will likely be a long slog for this stock as long as weak prices in the power market persist.

For income investors, the generous dividend (at the current stock price) and the relative safety of the company has appeal.

kelbon

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Author: BruceCM Big red star, 1000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7604 of 8824
Subject: Re: Excelon Date: 10/30/2012 5:19 PM
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M* has a huge 'buy' on EXC, due primarily to the expectation that NG and Coal prices will increase but also on the increasing price caps just recently approved by TX. Add to this the cost of the Constellation integration that is currently winding down and the 2011 overfunding of the pension plan, and I think the M* analyst sees a brighter future for EXC earnings. The market is just a bit spooked, I think, over the current high earnings POR (about 90%), the impact on EPS since 2010 of the recent changes and declining cash...even though equity has been increasing, however slightly, over the same period.

I bought my EXC shares back in the 90s, and am a bit overexposed to this income source. Were I not so allocated, I'd be a buyer at today's prices.

BruceM

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Author: BruceCM Big red star, 1000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7607 of 8824
Subject: Re: Excelon Date: 11/1/2012 2:50 PM
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Well, this is the risk one takes when earnings payout ratios get this high....

http://www.bloomberg.com/news/2012-11-01/exelon-falls-after-...

BruceM

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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7608 of 8824
Subject: Re: Excelon Date: 11/1/2012 8:26 PM
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Yep possible div cut. Here is fool take.
http://www.fool.com/investing/general/2012/11/01/exelon-q3-e...

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Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7610 of 8824
Subject: Re: Excelon Date: 11/3/2012 1:10 PM
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Excelon's stock saw quite a dip this week because of poor results, and the potential for a dividend cut, prompted more for the benefit of retaining ratings than out of financial necessity.

However, it's worth considering that Excelon's bad news and stock-price decline doesn't necessarily only reflect what ails the company. The Dow Jones U.S. Utilities Index was down 2.9% for the week and was the worst performing sector of the S&P 500.

Assuming that things will eventually improve for the company, and their customers, the current stock price might be in bargain territory.

kelbon

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