Topic: Growth Stocks

AMEREN CORP. $36 – New York symbol AEE

AMEREN CORP. $36 (New York symbol AEE; Income Portfolio, Utilities sector; Shares outstanding: 242.6 million; Market cap: $8.7 billion; Priceto- sales ratio: 1.3; Dividend yield: 4.5%; TSINetwork Rating: Average; www.ameren.com) has received approval from federal regulators to sell five of its nonregulated coal-fired power plants in Illinois to Dynegy Inc. (New York symbol DYN).

Weak power demand and lower rates have hurt these plants’profits. As a result, Ameren will receive no cash for them. However, Dynegy will assume $825 million of their debt.

Regulators in Illinois have also let Ameren put off installing new pollution-control equipment in these plants until 2020. However, Dynegy may cancel the deal if regulators force it to make these upgrades sooner.

Ameren is a hold.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.