Portland General Electric (NYSE: POR) is
engaged in the generation, purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. The company's generating portfolio consists of thermal, hydro and wind resources. It serves approximately 813,000 residential, commercial and industrial customers. The firm also sells electricity and natural gas in the wholesale market to western U.S. utilities and energy marketers.
The company pleased investors earlier in the month, when it reported Q2 EPS of 63 cents and revenues of $425 million. Analysts had been looking for 58 cents and $419 million. Management also guided FY08 EPS to $1.85-$1.95, versus Street consensus of $1.80. In discussing significant capital projects, the CEO noted that the firm is moving forward with the next phase of a wind farm and with the implementation of a new smart-metering technology.
The stock
popped through 200-day moving average resistance on the news and has since been consolidating the gain in a bullish "pennant" pattern. Stocks frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with two "strong buys", one "buy" and five "holds". The POR P/E ratio (14.37), Price to Sales ratio (0.89), Price to Book ratio (1.18), Price to Cash Flow ratio (5.25) and Operating Margin (13.27%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 91% of the outstanding shares. Over the past 52 weeks, the stock has traded between $21.89 and $28.83. A stop-loss of $22.10 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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Reader Comments (Page 1 of 1)
8-21-2008 @ 12:13PM
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