Small Cap Strategist is published by Crystal Equity Research an independent research resource on small capitalization stocks. Follow along as we discuss the most recent trends in the small-cap sector, investigate interesting companies and pan a few not-so-promising stocks.
has the capacity to generate 34,700 megawatts of power.It takes a wide mix of energy sources to must
that kind of power:gas and oil fired
turbines, nuclear, hydropower, wind, biofuel and solar.As impressive as it is for an energy company
to boast the mobilization of the full array of all available power sources, it
is Exelon’s nuclear portfolio that is remarkable.Exelon is the largest operator of nuclear
power plants in the U.S.As much as 55%
of the company’s generating capacity or 19,085 megawatts is from nuclear power.
Three Mile Island Unit #1
nuclear power portfolio of Exelon includes seventeen reactor units at ten
different power plants-at least for now.The facilities are located in Illinois,
Pennsylvania and New Jersey.While
Exelon has submitted renewal applications for its Braidwood, Byron and Limerick
facilities, the company withdrew an application for a new nuclear plant in
Victoria County, Texas.The plant was to
feature two economic simplified boiling water reactors. Exelon has also announced its intention to
retire its Oyster Creek facility in 2019.
cited economic circumstances as its principal reason for nixing the Victoria
site.The low price of natural gas is
the bane of nuclear.The original
application for Victoria County was submitted in 2008 and Exelon threw in the
towel in 2010.Since then natural gas
prices have plunged even lower.We do
not expect Exelon to return to the NRC any time soon.
EXC is trading below average multiples for the company's peer group of diversified
utilities.Analysts covering the stock
do not seem to see much growth ahead for Exelon, which is a problem for the
stock.This is probably why the
consensus opinion is underweight.
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of the Small
Cap Strategist web log, Crystal Equity
Research nor its affiliates have a beneficial interest in the companies