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Posted

I am tempted to short Eversource.

My town and neighboring towns has lost powers for a week now and people are so pissed with them.

The regulator is also pissed.

 

https://www.nbcconnecticut.com/news/local/top-state-leader-calls-for-resignation-of-eversource-ceo/2316001/

 

https://www.zawya.com/mena/en/economy/story/Hurricane_Isaias_may_claim_at_least_one_CEO_scalp-TR20200810nL1N2FC0HXX1/

 

“Hurricane Isaias may claim at least one chief executive’s scalp. Connecticut legislators want the head of James Judge, the CEO of $30 billion New England utility Eversource Energy, on a pike as blackouts linger in the Nutmeg State. “

 

Stock is down 2% today.

 

I am not emotional about this stock. I just think investors are not realizing how bad the situation is for this company.

 

 

 

Posted

I am tempted to short Eversource.

My town and neighboring towns has lost powers for a week now and people are so pissed with them.

The regulator is also pissed.

 

https://www.nbcconnecticut.com/news/local/top-state-leader-calls-for-resignation-of-eversource-ceo/2316001/

 

https://www.zawya.com/mena/en/economy/story/Hurricane_Isaias_may_claim_at_least_one_CEO_scalp-TR20200810nL1N2FC0HXX1/

 

“Hurricane Isaias may claim at least one chief executive’s scalp. Connecticut legislators want the head of James Judge, the CEO of $30 billion New England utility Eversource Energy, on a pike as blackouts linger in the Nutmeg State. “

 

Stock is down 2% today.

 

I am not emotional about this stock. I just think investors are not realizing how bad the situation is for this company.

 

ED, PEG and NGG (all of them are East coast utes) are all down today in the same 2% ballpark. Likely cause is rising treasury yields, imo.

 

May the power be with you soon.

Posted

I am tempted to short Eversource.

My town and neighboring towns has lost powers for a week now and people are so pissed with them.

The regulator is also pissed.

 

https://www.nbcconnecticut.com/news/local/top-state-leader-calls-for-resignation-of-eversource-ceo/2316001/

 

https://www.zawya.com/mena/en/economy/story/Hurricane_Isaias_may_claim_at_least_one_CEO_scalp-TR20200810nL1N2FC0HXX1/

 

“Hurricane Isaias may claim at least one chief executive’s scalp. Connecticut legislators want the head of James Judge, the CEO of $30 billion New England utility Eversource Energy, on a pike as blackouts linger in the Nutmeg State. “

 

Stock is down 2% today.

 

I am not emotional about this stock. I just think investors are not realizing how bad the situation is for this company.

 

ED, PEG and NGG (all of them are East coast utes) are all down today in the same 2% ballpark. Likely cause is rising treasury yields, imo.

 

May the power be with you soon.

 

Because all of them are being blamed for the storms. For years they have been reducing labors and saved on maintenance, and shareholders benefited. Now politicians may force them to spend more money, including adding new headcounts, to prepare for future outages.

 

 

Posted

I am tempted to short Eversource.

My town and neighboring towns has lost powers for a week now and people are so pissed with them.

The regulator is also pissed.

 

https://www.nbcconnecticut.com/news/local/top-state-leader-calls-for-resignation-of-eversource-ceo/2316001/

 

https://www.zawya.com/mena/en/economy/story/Hurricane_Isaias_may_claim_at_least_one_CEO_scalp-TR20200810nL1N2FC0HXX1/

 

“Hurricane Isaias may claim at least one chief executive’s scalp. Connecticut legislators want the head of James Judge, the CEO of $30 billion New England utility Eversource Energy, on a pike as blackouts linger in the Nutmeg State. “

 

Stock is down 2% today.

 

I am not emotional about this stock. I just think investors are not realizing how bad the situation is for this company.

 

ED, PEG and NGG (all of them are East coast utes) are all down today in the same 2% ballpark. Likely cause is rising treasury yields, imo.

 

May the power be with you soon.

 

Because all of them are being blamed for the storms. For years they have been reducing labors and saved on maintenance, and shareholders benefited. Now politicians may force them to spend more money, including adding new headcounts, to prepare for future outages.

 

Prioritizing customers over shareholders?

 

Blasphemy!

Posted

...vs shorting Eversource...

Because all of them are being blamed for the storms. For years they have been reducing labors and saved on maintenance, and shareholders benefited. Now politicians may force them to spend more money, including adding new headcounts, to prepare for future outages.

So, apart from the noise, you have to establish scenarios where the intrinsic value or perception of intrinsic value is or will be significantly impaired.

 

When looking back at the New York outage from the summer 2019 (there was a small thread on this) and when comparing to the longer term evolution of Con Edison's share price, it is not at all obvious how one could have benefitted from a short sale then (the same CEO is still there).

 

Investor-owned utility conversion to another model could make sense, under certain circumstances, but this seems unlikely for Eversource. If there was one poor corporate 'citizen' example, it was PG&E (2 threads on this) and it even went through bankruptcy and came out relatively intact.

 

Please show what is different in this case.

Posted

WFC - Broke even on my position. Plenty of other good banks out there at good prices. I think the thesis should be kept relatively simple. Too many "if they dos" for my liking. Couple that with the current environment and I'd rather try to find a better place for my money. I do believe there will be plenty of opportunities to re-enter a position within the next year should I change my mind.

  • 2 weeks later...
Posted

Sold most of my BAESY this week. It is the defense co, I have the least conviction in and it did well recently after the dividend payment was announced (they had deferred it after COVID-19 happened).

Posted

I too did some trimming today although not as much, and also going thru closing on a piece of property. Interesting times!

Posted

Trimmed a little more FIZZ and lightened up a hair on some MSGE(no less conviction just a very outsized position). Also swapped some SPAQ common into a few SPAQ/ws.

Posted

Trimmed half of BRK.B in a 401K & would sell the rest if it started bumping the 52 week high.

 

My confidence started to get eroded when WEB bought airlines.

 

The IPO purchase doesn't even move the needle.

I think the sale of WFC is a blunder (you already have enough cash).

Too many odd purchases that don't seem to have any logic behind them.

It's like he's picking away at garage sales with no cohesive strategy in mind.

 

As another poster said, just buy back your own stock.

 

I still believe the core of BHE, BNSF & insurance are strong but...

 

If it goes sub $180 I may repurchase (and then again, I may not).

Posted

BRK.B - slowly exiting over the past week.

 

Reduced positions another 15%

 

Closed my remaining GOOG calls  to free up more cash

 

Sitting about 70% cash now

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