For Immediate Release
Chicago, IL – March 14, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Exelon Corporation (EXC - Free Report) , Constellation Energy , NRG Energy Inc. (NRG - Free Report) , Public Service Enterprise Group Inc. (PEG - Free Report) and AES Corporation (AES - Free Report) .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: https://at.zacks.com/?id=5513
Here are highlights from Tuesday’s Analyst Blog:
Exelon, CEG Merger: Birth of a Titan
Exelon Corporation (EXC - Free Report) has completed the proposed merger with Constellation Energy in a stock-for-stock transaction. The new organization will retain its identity as Exelon Corporation. Headquartered in Chicago, the merged company will trade under the symbol of EXC on the New York Stock Exchange.
In April last year, Exelon had entered into an agreement to acquire Constellation Energy, for about $7.9 billion. The shareholders of Constellation will receive 0.930 shares of Exelon common stock in exchange for per share of Constellation common stock.
The exchange ratio agreed upon represents an 18.1% premium to the 30-day average closing stock prices of Exelon and Constellation as of April 27, 2011. Post-merger shareholders of Exelon will enjoy 78% ownership of the combined company, while the rest will belong to Constellation shareholders.
The merger is expected to boost Exelon’s position. The company is well poised to become the nation’s leading competitive energy products and services provider in terms of load and customer base and also the biggest competitive power generator. The consolidated entity will also produce power at lower costs.
The merger will also enable them to jointly work on fuel innovation, increase efficiency and provide better options and rates to customers. The merged entity is expected to supply approximately 164 terawatt-hours per year to as many as 100,000 businesses and public sector companies and about 1 million residential customers.
Despite several positives, we are cautious about the uncertainties surrounding the integration, given Exelon’s unsuccessful attempts to acquire companies like NRG Energy Inc. (NRG - Free Report) in 2008, Public Service Enterprise Group Inc. (PEG - Free Report) in 2004 and Illinois Power Company in 2003.
In the current scenario, mergers and acquisitions in utilities sector are common phenomena. Recently, AES Corporation (AES - Free Report) acquired DPL in an all-cash transaction. Exelon Corporation currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
Headquartered in Chicago, Exelon is one of the nation’s largest electric utilities with approximately $19 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation, a nationwide reach and enjoys a strong position in the Midwest and Mid-Atlantic.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: https://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: https://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at https://at.zacks.com/?id=5518.
Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339