This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buffett's 'Secret' Reveals 5 Stocks to Buy


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Last up is Exelon (EXC - Get Report), the $30.5 billion power holding company that owns a mix of regulated and unregulated businesses. Exelon's book value per share has grown more than 21% in the last year, thanks in large part to the firm's acquisition of Constellation Energy, a deal that dramatically increased the firm's overall size. The move also makes Exelon the biggest power retailer in the country.

Exelon's heavy exposure to nuclear power is a big benefit for the firm, especially as prices for energy commodities continue to climb. Nuclear power plants are nightmares to build (both from regulatory standpoints and in terms of capital required), but they produce power more cheaply than almost any other source -- and nuclear power makes up around 80% of Exelon's output. And the high barriers to building new plants means that replacement costs exceed the conservative values carried on EXC's books.

The power business is capital intense, and Exelon's balance sheet is no exception. That said, the firm generates enough cash right now to cover its debt obligations and to continue to pay out a huge 5.9% dividend yield. While growth in the payout may be a little less likely, Exelon's book value growth is another source of tangible shareholder value that shouldn't be ignored.

To see these book value growth names in action, check out the Book Value Per Share Growth Fall 2012 portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
F $11.55 0.00%
EXC $30.46 0.00%
JOY $11.15 0.00%
TER $17.72 0.00%
WDC $41.08 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs