NRG Energy, Inc. ($NRG) Target: $25 Confident Investor Rating: Fair

Several times a year, a Confident Investor must reevaluate the companies in the portfolio. Keeping your money in a stock that no longer qualifies as a "Good" company can end up hurting your investment performance a great deal.  Also, there are a lot of Good Companies so losing the worst of the best is not going to impact the ability to have a balanced portfolio.  Over the coming days, this site will evaluate each stock on the Watch List.

 

Company name NRG Energy, Inc.
Stock ticker NRG
Live stock price [stckqut]NRG[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Good
Sales growth Fair
EPS growth Poor
P/E growth Good
EBIT growth Poor
ANALYSIS
Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $28.18
Target stock price (averages with growth) $26.79
Target stock price (averages with no growth) $21.08
Target stock price (manual assumptions) $24.16

The following company description is from Google Finance: http://www.google.com/finance?q=nrg
NRG Energy, Inc. (NRG) is a wholesale power generation company. It is engaged in the ownership, development, construction and operation of power generation facilities, the transacting in and trading of fuel and transportation services, the trading of energy, capacity and related products in the United States and select international markets, and the supply of electricity and energy services to retail electricity customers in the Texas market. On May 1, 2009, the Company completed the acquisition of Reliant Energy, Inc. (Reliant Energy). On November 20, 2009, NRG, through its subsidiary NRG Solar LLC, acquired FSE Blythe 1, LLC (Blythe Solar) from First Solar, Inc. On November 9, 2009, NRG, through its wholly owned subsidiary, NRG Bluewater Holdings LLC, completed the acquisition of a 100% interest in the subsidiaries of Bluewater Wind LLC. In December 2009, NRG completed its Langford project, a 150 megawatt wind farm located in Tom Green, Irion, and Schleicher Counties, Texas.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. This company used to be on the Watch List but I am removing it now that it dropped to Fair.

 

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