• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 9 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 19 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 4 hours Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours Saudi Arabia turns to solar
  • 18 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 15 mins U.S. Withdraws From U.N. Human Rights Council
  • 1 hour Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 4 hours Gazprom Exports to EU Hit Record
  • 9 mins Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours What If Canada Had Wind and Not Oilsands?
  • 9 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 4 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 3 hours "The Gasoline Car Is a Car With a Future"
  • 23 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 23 hours WE Solutions plans to print cars
  • 15 hours EVs Could Help Coal Demand
Alt Text

The Next Stage In Perovskite Solar Development

Perovskite photovoltaic cells have long…

Alt Text

EV Adoption Could Cost Germany 75,000 Jobs

The fast-growing adoption of electric…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Trending Discussions

Is Exelon Building an Alternative Energy Conglomerate?

Exelon (EXC) popped up on my radar a few months ago, when it bought the wind energy business from John Deere (DE) for $900 million. The company plans to cash in on a national trend by states requiring their power companies to obtain fixed minimum amounts of electricity from green, carbon free alternative sources.

California has the most ambitious goal, setting a 33% target by 2020 (click here for “The Solar Boom in California”).  Some 28 other states are following suit with lesser thresholds, and more are expected to follow. You would think wind is a bad place to invest on the eve of a Republican takeover of the House of Representatives that could herald the freezing or elimination of all alternative energy government subsidies.

In fact, wind energy is now competitive on a non subsidized basis in many parts of the country. That is what Google (GOOG) obviously thinks, since it recently committed to investing $5 billion in a massive offshore grid meant to harvest power from planned wind energy projects off the East coast.

There is another political angle to this story. Exelon already has a large established business maintaining nuclear power plants. The nation’s 100 facilities are getting long in the tooth, some approaching 60 years old, and are in desperate need for modernization. Exelon already has contracts to upgrade 39 of these.

While the Republicans’ alternative energy credentials leave something to be desired, they are big fans of carbon free nuclear, which I believe will be a crucial part of any long term energy solution. That’s why you find top uranium producer Cameco (CCJ) is my model portfolio, which has soared a stunning 55% since August.

To top it all, (EXC) offers a whopping great 5.1% dividend, which effectively makes it a mid rated corporate bond in this low yield world. If you are looking for a low volatility name to add to your portfolio in this sector, Exelon might me a good one.

By. Mad Hedge Fund Trader




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News