We posted on this stock just last week when it was above $37. Last week it finished below $36, at $35.80. That is a 52 week low. Friday it closed at $36.15.
Let's review EXC, Exelon, which is a electric utility in the midwest. It has a 13 PE, $20 billion in revenue, $2.42 EPS, market cap of $30 billion, and a $2.10 dividend yielding just at 5.9%.
What you have is a Fortune 500 mostly regulated utility with a large set of nuclear power generation facilities. This is a safe dependable dividend paying near 6%, which is the only such large cap electric utility dividend left in the US currently as far as we know.
Most electric utilities in the US are in overbought territory now in our opinion, with EXC being the exception. The overhang of the late merger offers a buying opportunity.
The bottom line is this stock is offering a significant buying opportunity in our opinion. Back up the truck and load up before the market finds this bargain. We have a sizable option position in this stock currently and will add more at the next options expiration period.
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