Southern Company (NYSE:SO)

CAPS Rating: 4 out of 5

The Company through its traditional operating companies, provides electric service in four Southeastern states.


Player Avatar TyrVsGarm (28.39) Submitted: 7/15/2009 1:20:40 PM : Underperform Start Price: $24.21 SO Score: +21.06

Southern has entirely to large of a coal presence in its energy production portfolio to be considered a winner of increasing international and domestic pressure to cut emissions. SO will likely find itself with large upgrade costs to reduce the CO2 emissions of its coal burning facilities and I don't see substantive increases in its nuclear power plant holdings to offset this hit to its EBITDA.

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Member Avatar yelnats7 (< 20) Submitted: 1/8/2010 11:31:17 PM
Recs: 0

Not true SO has been going to Nat Gas for years? Not to mention nuclear , Open your eyes !

Member Avatar ScryingPool (< 20) Submitted: 1/25/2010 1:37:52 PM
Recs: 0

I invested in SO back in 2001; it was a good investment, probably the best long term I've ever made.

Now, the question to sell after 9 years holding?

1.) Big energy companies die the slowest
2.) SO offers a good, honest dividend

1.) The company appears to be rounding the maturity bell curve.
2.) SO's good, honest dividend is pushing high (5.28% yield). Companies with a div yield of over 6% are a red flag to me. MSFT, despite it's stagnance in the market for 10 years is still offering under 2%. What does SO have to fear with such a high div?

1.) Emissions credits are expensive but all energy companies rely somewhat on dirty energy. What's SO's vulnerability for this given their competition (i.e. what energy companies are cleaner?)

Member Avatar boxwe612 (< 20) Submitted: 5/15/2012 12:49:43 PM
Recs: 0

Southern Company is reducing its dependance on coal by adding gas units and expanding their nuclear fleet. There is risks associated with being a leader in nuclear expansion, but they have partners who share the risks. Changing the generation sources is creating a need for massive investments in the transmission system. In Georgia, Southern will only be responsible for 65% of the tranmission investments because of the participation of public power in ownership of the grid. In Georgia they seem to be able to maintan cordial relations with the elected PSC which will be essential to any recovery associated with these hefty capital investments.

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