Stock Spin-Offs » Entergy

New York Rejects Entergy Spin-off Plan . . . NEXT!

john — Sun, 28 Mar 2010 14:34:57 +0000

Entergy’s (ETR) spin-off of nuclear power plants looks to be dead in the water according to a recent article from Reuters after the New York Public Services Commission rejected their most recent plan.

No one knows what the ETR board will decide to do next of course, but at some point managers as well as investors need to say . . . “Next!” . . . and move on.

Stock spin-offs can make grand theater as this attempt illustrates, but entertainment should be, at best, a very very minor reason that you put attention on any stock or group of stocks.

An obvious part of trading discipline is keeping your attention focussed on what you are doing, but deciding when it is time to direct your attention elsewhere and doing that quickly and completely is just as important . . . and much harder for most people to master.

Entergy’s Spin-off Of Its Nuclear Power Plants Hits Another Snag In Vermont

john — Sat, 13 Mar 2010 20:47:23 +0000

Entergy, ETR, has been trying to complete a stock spinoff to separate its nuclear power plants for some time. This may be a terrific deal for Entergy and maybe even a good one for the owners of the new entity to be called Enexus, but states in which those power plants are situated apparently aren’t so sure.

Rightly or wrongly, citizens seem to be saying that they “smell a rat”. Perhaps they figure that when it’s time to shut down and clean up these plants Entergy wants to be sure that their deep corporate pockets are not available to the states in question if the Enexus doesn’t have enough money to do the job. And if that happens, guess who will foot the bills.

In a recent Vermont Senate vote reported in the Rutland Herald, the relicensing of the Vermont Yankee plant in 2012 was blocked.

Which leads to a question that comes up every now and then. Do you invest in a company because it is watching out for its own interests very well if you would feel that their actions were irresponsible if you lived next door to their operations? I’ve never completely figured that one out for myself, but I do try to remember that my purpose in investing is to make money.

Entergy (ETR) Stock Spin-off To Go In Other Direction?

john — Wed, 04 Nov 2009 00:37:57 +0000

The Entergy Stock Spin-off of its nuclear power plants has been in the hands of the regulators for some time. Apparently, Entergy is thinking that if they can’t get their nuclear business separated by spinning it off, then maybe they can do the reverse. And why not? If the point of a stock spin-off is to end up with more focused, effective entities that each will do better on its own, what does it really matter which part is the parent?

Recently the Wall Street Journal wrote . . . “Entergy Chairman and Chief Executive J. Wayne Leonard with saying that the company could spin off its utility businesses into a stand-alone company to accomplish the same goal of separating its regulated utility businesses concentrated in the Southeast from its nuclear plants that sell power at market prices.” The article is worth reading if you are following Entergy’s efforts from another point of view.

The question for us may end up being ‘which one is the parent?’ We, of course, want the one whose stock price is going to go up the most, the fastest whatever it ends up being called. I guess that’s the one whose real value has been bound up the most in the present organization. Is it the utility that is stuck with the nuclear power plants or the nuclear power plants that are stuck with being part of a utility whose main focus is in another part of the country?

We can just keep watching it unfold. There seems to be plenty of time for that.