StockCall Scrutinizes Exelon and Ameren: Diversified Power Companies Diversify their Business

Fri Feb 15, 2013 8:01am EST

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StockCall Scrutinizes Exelon and Ameren: Diversified Power Companies Diversify their
Business

LONDON, February 15, 2013 /PRNewswire/ --

    Diversified power companies are dealing with a wide number of issues. While the
sector benefits from the soft prices prevailing for coal and natural gas, it is also
faced with the growing pressure of environmental regulations. Ameren Corporation (NYSE :
AEE) decided to get out of power generation business due to soft demand and excessive
regulation. On the other hand, Exelon Corporation (NYSE : EXC) suffers from low margins
as it is invested in nuclear power generation and hence does not benefit from decline in
coal prices. StockCall reviewed the solar industry and chose Exelon and Ameren for its
technical coverage. These free reports can be seen for free at
http://www.stockcall.com/signup  

    Ameren Announces Quarterly Dividend  

    Ameren Corporation recently announced its quarterly dividend at 40 cents per share,
pushing its dividend yield to impressive 4.83 percent. The company is also scheduled to
announce its quarterly numbers on February 20th. It is expected to report its net income
at 24 cents per share while its revenue is likely to be at $1.76 billion for the
quarter. While the stock appreciated over 7 percent this calendar year, it is likely to
be negatively affected by the decline in the company's revenue. Register for today's
free analysis on Ameren Corporation at http://www.StockCall.com/AEE021513.pdf  

    Ameren is a utility holding company and is based out of St. Louis. It recently
received five years extension to comply with Illinois environmental regulations. It runs
three natural gas and five coal powered plants in the state. However, the company is
looking to streamline its business and to get out of non-core segments. Ameren is now
planning to pull out of power generation business. It has cited stringent environmental
regulations as the main cause behind the decision. Ameren also alluded to soft power
prices as the other possible reason. This decision has created uncertainty about the
company's future. However, if executed properly, it may help in ensuring the company's
viability in the long-run. Ameren did not provide any details about its divestment
process. Despite such drastic actions, the company is on its way to provide good returns
to its investors.  

    Exelon Slashes Dividend  

    Exelon Corporation boasts an excellent dividend yield of 6.84 percent. However, the
dividend has been now severely reduced to 31 cents per share, with effect from Q2.
Despite the cut, the dividend yield is still attractive. While its stock saw a deep
decline in 2012, it is showing signs of recovery this year. While the dividend cut may
dissuade some investors, it will relieve the burden on the company's free cash flows and
will have positive outcome in the future. Download the free research on Exelon
Corporation by signing up now at http://www.StockCall.com/EXC021513.pdf  

    Exelon management is focused on growth through capital investment and spent $5.8
billion in CAPEX during 2012. Like its dividend cut decision, high capital expenditures
may seem negative in the short-run, but are likely to be accretive to its stock price in
the long-run.  

    Exelon is mainly invested in power generation through nuclear processes and as such
did not benefit from the drop in natural gas and coal prices. Its other malady is
related to its weak margins. The company currently sports operational margin of 11
percent while its peers sports operating margins in the range of 15 percent to 22
percent. The stock has made good progress this year and may continue to have mild upside
in the near future. However, its long-term prospects look better.  

    About StockCall.com  

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StockCall.com

CONTACT:  William T. Knight, Email: info@stockcall.com, Contact Number:
+1-646-396-9857 (9:00 am EST - 01:30 pm EST)
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