Friday, September 4, 2009

Consolidated Edison Review









































Consolidated Edison, Inc. (Con Edison) is the holding company of Consolidated Edison Company of New York, Inc. (Con Edison of New York), and Orange and Rockland Utilities, Inc. (O&R), both of which are regulated utilities. Con Edison’s principal business segments are Con Edison of New York’s regulated electric, gas and steam utility segments, O&R’s regulated electric and gas utility segments and Con Edison’s competitive energy businesses. Con Edison of New York provides electric service in all of New York City (except part of Queens) and Westchester County, an approximately 660 square mile service area with a population of more than nine million. O&R, along with its wholly owned utility subsidiaries, Rockland Electric Company (RECO) and Pike County Light & Power Company (Pike), provide electric service in southeastern New York and in adjacent areas of northern New Jersey and eastern Pennsylvania, an approximately 1,350 square mile service area. More from Reuters »






















Filter 1: Insider Trading


Insider trading we will defined as the buying or selling of corporate stock by a corporate officer in one’s own company. By examining Insider trading we can hope to gain insight into the future of a business as it is seen by those most closest to operations. As it has so eloquently been put before, people sell stock for all sorts of reasons but only ever buy it for one. To read more about why we value insider trading click here.






















































































Filer's Name Relation Title Trans. Date Price Mkt Value
Muccilo Robert VP & Chief Accounting Officer 31/07/2009 $37.51 $1,900
Moore Elizabeth D General Counsel 31/07/2009 $37.51 $1,056
Rana Louis LPresident & COO (CECONY)31/07/2009
$37.51

$2,639


Ryan Joann F

SVP, Business Shared Services
31/07/2009$37.51$2,639

Del Giudice Michael J
Director29/07/2009$39.07$150
Ranger Michael WDirector29/07/2009$39.07$1,500

Ranger Michael W

Director

16/07/2009

$37.82

$3,000

Del Giudice Michael J

Director

16/07/2009

$37.82


$300

Ranger Michael W

Director

15/07/2009

$37.38

$1,500

Del Giudice Michael J

Director

15/07/2009


$37.38

$350

Filter 2: Graham Analysis
Benjamin Graham is known as the father of value investing. Through his book
the intelligent investor he created a set of criteria that a company should
meet in order to merit his investment. To read more about this criteria and
why Graham considered each so significant click here. There is debate over
the utility of applying one set of rules to compare company’s in different
sectors and different markets, therefore we have provided comparisons
against, industry, sector and indice.
In the charts below (Blue= CONED, Green=Industry, Yellow=Sector, Red=S&P 500















P/E




C:16.23


I:1.5


S:1.72


Ind:40.35




P/E is high I'd prefer to see this under 15 for an industry, it is close to where we want to be. Comparisons against industry and sector aren't very relevant as the majority of these companies don't pay a dividend.














Price to Book





C:1.03




I:1.28



S: 1.30


Ind: 3


A price to book ratio of 1.5 is desirable to assure we aren't overpaying. ConEd comes in at 1.03 which is a bit lite of where we want to be.













Current Ratio






C:1.10




I:0.58



S:0.70




Ind:
0.91







A current ratio of 2 indicates that the company is in a good position to control its debt position should the tides change. A 1.10 current ratio is not that good.


















EPS







C:3.35




I:-0.58



S:0.23



Ind:-0.30



A 5yr EPS is an important way of assuring we aren't buying a low quality company. In this case the EPS of 3.35 is low I wold like to see a much stronger number here.











Dividend Yield







C:5.94



I:1.55



S:0.11


Ind:1.55



A solid dividend is something I always like to see. Anything above 3.5% is a nice to see, 6% is very pleasant.

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