From Nukes to Wind: Exelon Is Excellent

As reported earlier on SeekingAlpha.com:

Tuesday, August 31, 7:31 AM Exelon (EXC) agrees to buy Deere's (DE) wind energy business in a deal worth a total of $900M. "Not only does this acquisition add value for Exelon shareholders, providing incremental earnings in 2012 and cash flows in 2013, but it also is one more way to implement a clean energy future." (PR)

My initial foray, some time ago, into EXC was based on a variety of considerations including:

• my desire to add 'defensive' stocks to the portfolio in light of my overall 'concerned optimism' about markets in general (see recent instablogs)
• EXC's good dividend (currently 5.1%)
• it's leadership in nuclear energy, and
• it's strong presence in Wind Energy in the Eastern US.

Today, I like what I hear (read) from the CEO on Exelon's move (as reported on MarketWatch):

Exelon Chairman and CEO John Rowe said the deal will help the company as more states pass rules to require emission-free generation. Meanwhile, on the national level, wind energy advocates are pushing for a renewable energy standard from the federal government.

"We expect to see increasing demand for clean, efficient wind power at a national level and in the 29 states that already have a renewable energy standard," Rowe said. "This acquisition gives Exelon a strong position in the wind generation business that adds diversity to our generation fleet and provides more options for future growth."

The other not so little factoid that I like about EXC is what was announced yesterday with regard to their investments (job-creating) in the State of Illinois:

Press Release: CHICAGO - In the next few weeks, Exelon Corp. will undertake the first segment of a massive spending program in Illinois that will create more than 4,200 full-time and “full-time equivalent” positions over the next 5 years in the Illinois cities and counties that house Exelon nuclear facilities.

For the full press release, follow this link.

The press release gives a good amount of detail on how the money will be spent including decommissioning one plant, upgrading six others to produce more carbon-free electricity and upgrades to 33 nuclear plants for refueling operations.

Finally, I'm no chartist, but at these levels or slightly below, there could be a good argument made for relative value, especially for a stock that pays a 5+% dividend, is expanding and diversifying its business, is 'clean' conscious and is 'getting it' when it comes to the country's need for productive job creation.

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Again, for compliance reasons, this note is not a blanket recommendation on timing nor holding. Each investor has a unique situation that needs to be considered on its own merits by them. But it is a headsup to take a good look at a company that is making some interesting moves in a space that is of great importance to this country.

Disclosure: Author is long EXC, DE