reevaluating AES, ABB, and others ?3

09:19 10-Mar-20

It's been about a year since AES passed my price threshold, but recent action has finally brought the company back into buy the dips territory for me.  Today might not be the day for that, as political rhetoric boosts the market, but I wanted get the note out there as early as possible.  AES does have some energy exposure with its natural gas distribution in Central America, but that is far outweighed by its other businesses.  Furthermore, if the dividend is going to be increased, that should happen with the next iteration at the end of April.

CTL is also now below the low end of my range.  With minimal virus exposure and a much better yield, it looks like a good short-term opportunity as it continues to issue fluff press releases about pushing cloud access to customers.

By contrast, VIRT hit my $24 price target yesterday, and briefly topped $26.  That doesn't mean I'm in any hurry to sell it.  The volatility we're seeing is a fundamental positive for the stock, and there is probably more to come, with the virus still spreading and the Saudis flooding the marking with oil.  The dividend in this case is still far off, but a raise in payout is also possible.

ABB could also qualify as a hybrid Growth/Yield stock, especially for those looking to diversify away from hydrocarbons.  Yesterday's announcement of its own version of Tesla's PowerWall fits that bill perfectly, as does the European market.  The company can also benefit from 5G rollout, though that may be delayed.  At prices below $20, investors should qualify for over 4% yield all at once around the beginning of May.  For those looking for pure growth, AMSC has the largest bounce prospects.

To round out the news, eMagin released its earnings this morning, almost breaking even.  That represents improvement, but not nearly enough to interest me.  MagnaChip's upgraded revenue guidance and single digit stock price are a little more tempting, but not compared to the values and yields offered by the likes of CVA and especially BGCP.  Both will keep on seeing near-term pressure, but I'm willing to put some faith in each management even in the face of further volatility.