Exelon Long-Term Investment or Call-Write Strategy (NYSE:EXC)
Exelon Corporation (EXC) Appears to have limited downside risk relative to the upside potential. This video demonstrates some of my findings as I examined Exelon for an investment. Buying into the number one of anything is generally a great idea when on sale. We are not talking about the number one maker of buggy whips either. There appears to be no end to the demand for electric power and Natural Gas prices are unlikely to go much lower if lower at all. I should note that I have no faith natural gas prices are headed back up anytime soon.
From where I sit natural gas does not have any reason to move higher anytime soon. I would go so far to say that low gas prices look like they are here to stay for the next 3-5 years which is about as far out as anyone can reliably forecast. Constellation and Exelon are all but merged with the dust settling quickly.
Look for Exelon to move up above $40 a share within the 90 days which may not be all that impressive on its own, but investors can also look forward to a big dividend. Exelon dividend is well over 5% at a whopper 5.4% and $0.52 per share. The PE is near single digits and this has the appearance of many of the quality companies we saw trading cheap in 2009.
