AYE: Lookin' Good

Discussion in 'Trading' started by BlueHorseshoe, Dec 24, 2003.

  1. I don't trade stocks much, but took a position in AYE at 12.60 (which will probably end up being today's high :p ). First target is 20.00, then I re-evaluate.

    To get you started w/ due diligence, AYE tanked last year soon after buying an energy trading firm from Merrill Lynch. After the acquisition AYE discoverd that the firm was a scam - assisting Enron boost its earnings and the CEO stealing millions from Merrill. AYE's debt rating collapsed as it scramble to write off and downsize the acquisition, and simultaneously sue Merrill for fraud etc. etc. At least that is the basic outline as I understand it.

    And of course the chart is just to die for ... check it yourself.
  2. lindq


    Good luck. But as the fundamentals on this company are pretty awful, and from a technical view it is overbought short term, what was your reason for buying at this level?

    UPDATE - Allegheny Energy says may put core asset on block
    Monday December 22, 3:59 pm ET
    By Nichola Groom

    NEW YORK, Dec 22 (Reuters) - U.S. power company Allegheny Energy Inc. (NYSE:AYE - News), which narrowly averted bankruptcy earlier this year, said on Monday it may be forced put one of its more valuable power plants up for sale as it works to reduce its $5.2 billion debt load.

    Like many of its peers, Hagerstown, Maryland-based Allegheny is selling assets that fall outside its primary utility and power-producing businesses to help pay down debt it accrued during the heyday of investment in the now-collapsed energy trading market.

    Allegheny Stumbling Into New Year
    By Melissa Davis
    Senior Writer
    12/22/2003 01:04 PM EST

    After months in the dark, Allegheny (AYE:NYSE - commentary - research) investors finally know the blinding truth.

    The utility's performance remains dim at best. The company, which first shed some light on its operations by issuing restated financials in September, offered another dark picture on Friday. The company weathered steep first-half losses, particularly in the second quarter, as its trading division continued to bleed.
  3. Yes, I addressed all that in my post.

    I'm a bit mor familiar w/ the company than a couple of newswire stories.

    Thanks anyway.
  4. lindq


    So sorry, but your post did not at all address the issue of why you bought at this time. You only touched on why it has recently dumped.

    I'm not too old to learn something new, and was looking for your reasoning on this, and why you think the chart looks good.