Duke Energy Corp (NYSE:DUK)

intrinsic value 55

INTRINSIC VALUE 55

Its dividend. This is the largest energy company. It has already started the conversion from coal to Nat gas plants, and is better poised to take advantage of record low LNG costs.

Duke recognizes that spending today will mean saving (and earning) tomorrow. During the Q&A portion of the earnings call, Rogers went so far as to make a direct jab at one of his company's competitors: "Our modernization plan is ahead of most utilities in the country. If you look at Southern (NYSE: SO ) today, they are just now starting down the road of modernization of their generation fleet." I fact-checked Rogers, and he's right. In the past three years, Southern has spent 26% of its sales on capital expenditures, while Duke has doled out 32%. With legal battles behind it and a solid fourth quarter, I'm ready to make an "outperform" call on Duke. Read my full bullish take here:

http://www.fool.com/investing/general/2013/02/16/duke-energy-earnings-is-its-dividend-worth-it.aspx

Solid, safe play in uncertain times. Love the dividend, and expect the stock to show 10% return in the next 12 mos.

Lower natural gas prices and lower interest rates will enhance profitability in regulated environment

In light of public problems during the transition following the merger with Progress Energy, I see little reason to be confident in the Board's leadership (or the company's corporate governance practices, in general).

The threat of regulatory trouble and shareholder suits creates huge down-side potential that outweigh any benefit from the Progress merger.

Duk is finishing a new coal gasification plant in Edwardsport, IN. It is also pushing for distributed green energy. It is also working hard on it's own smart grid technologies.

Duke will have excessive expenses as the result of the merger with Progress Energy, as follows: Debt vs Earnings as combined with merger, excessive cost(s) associated with the merger, combined debt of both companies, and combined (major) operating expenses. As a result the Net Margin of the combined companies cannot support the FCF for the existing Dividend distribution (4.7%). This will result in a cut or discontinuation of dividends for a period of time until they can reduce the debt and other monetary obligations. Credit Rating has already been down graded by Moody. Commissions will also be reluctant to approve rate requests based on the CEO change decision immediately after the Merger Approval. The North Carolina Secretary of State continues to investigate thr post-merger events.

Duke will recover,however, just how long it will take is undetermined at this time.

With a consistent high yield dividend and good core business investors will pile in when there are no safe returns in bonds...... As close to a bond a stock could be.

Rapidly expanding customer base. Short term hit due to regulatory issues rapidly reverses.

May

The surprise firing of Progress CEO Johnson creates unnecessary headaches for DUK with state regulators who have to sign off on rate hikes. Having pulled a bait-and-switch on them while merger was under regulatory review, they'll be hesitant to agree to hikes for some time to come, if not as punishment, then as concern for whether DUK means what it says about needing to pass along costs.

S&P downgrades DUK, too, lawsuits are starting to hit, and natural gas prices won't stay low forever. This utility will underperform because it shot itself in the foot.

Duke-Progress merger will create mega-utility company.

I am a new investor, but from what I see in it track record it will do well.

Get bullish on utilities. DUK pays a 4.5% dividend. The 50 MA just passed the 100. And the low beta will help shield you from the upcoming slowdown.

Bull on the market, the high divvy slow growth stocks should lag.

Lets be honest, this compnay is not fair. Its has plants to in south america to give you a little taste of emerging markets, its have soler,nuke, coal, and gas plants not only on the east coast but Indiana and Illinois. It has sweet dividend and to top it all off once the deal with Progress energy goes through enough weight to make some very profitable deals.

Summer... Energy Costs go ^