• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 17 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 11 hours EU to Splash Billions on Battery Factories
  • 14 hours U.S. Shale Oil Debt: Deep the Denial
  • 23 hours The Balkans Are Coming Apart at the Seams Again
  • 7 hours Owning stocks long-term low risk?
  • 10 hours The Dirt on Clean Electric Cars
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 5 hours The end of "King Coal" in the Wales
Alt Text

IEA: Renewables Set For Explosive Growth

The IEA sees strong growth…

Alt Text

How Blockchain Is Transforming The Energy Industry

Blockchain, the tech that built…

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


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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