Dividend.com: Exelon Delivers Mixed News

Exelon Buyback the Good News, Guidance the Bad

Exelon(EXC Quote - Cramer on EXC - Stock Picks) is giving investors mixed news Thursday. The company announced a stock repurchase program, while at the same time lowering its 2008 earnings guidance.

The company said it plans to purchase $1.5 billion of its shares over the course of the next six months. At the same time, the company lowered its earnings guidance for 2008 to $4.15 to $4.30 a share, below the estimates of analysts surveyed by Thomson Reuters of $4.36 a share.

We turned cautious on the stock on Aug.1, when we removed the name from our recommended list. The stock was trading at $78.62 at that time. We noticed the price action was beginning to lag, and felt the stock's dividend yield was too low for us to want to hold it through the drop we felt was coming. The company's dividend yield is 2.78%, based on Wednesday's closing stock price of $71.91.

Exelon is a solid company, but we just don't find it to have an attractive risk/reward at this time. The stock isn't a recommended dividend stock at this time, holding a Dividend.com rating of 3.4 out of 5 stars.

Lehman Partnership Rumors Running Rampant

Lehman Brothers (LEH Quote - Cramer on LEH - Stock Picks) is a hot topic, as the financial services company continues to search for a suitor to help solve its liquidity issues.

The latest rumors include state-owned Korea Development Bank proposing to buy a 25% stake in Lehman through a consortium with other South Korean banks. There also has been talk of Britain's HSBC Holdings PLC (HBC Quote - Cramer on HBC - Stock Picks)as an interested party. Japan's Mitsubishi UFJ Financial Group(MTU Quote - Cramer on MTU - Stock Picks), previously mentioned as a possible partner, has denied reports it's considering making a bid for Lehman.

« Previous Page

1 2 3

Next Page »