Donations?

This blog is free. It is an experiment: I simply share my actions with anybody interested.

If you like this blog you can send it to a friend.

Thank you

Saturday, May 2, 2009

Time to buy NRG

May 2nd 2009

I believe it is time to buy NRG. Here's why.

In its industry (Utilities : Electric Utilities) NRG is fundamentally well positioned. I like its value indicators:
  • NRG is in the cheapest 20% of its industry if analyzed on PE, Price/Book and Price/Cash Flow, and it has an average Price/Sales
  • It has good Current and Quick Ratios, although it has a little high Debt/Equity Ratio
  • Profitability is in the best 20% of its industry, as its ROI and ROE
  • Finally, EPS and Sales Growth are better than industry average
In addition to that, technical indicators show that NRG's down trend is likely to be finished.
I would suggest to buy NRG with an initial stop loss at $16.35.

No comments:

Post a Comment

Please feel free to share your thoughts.