The Southern Company, together with its subsidiaries, engages in the generation, transmission, and distribution of electricity. The company also constructs, acquires, owns, and manages power generation assets, including renewable energy projects; sells electricity in the wholesale market; and distributes natural gas in seven states, as well as provides gas marketing services, wholesale gas services, and gas midstream operations. It owns/operates 33 hydroelectric generating stations, 29 fossil fuel generating stations, 3 nuclear generating stations, 14 combined cycle/cogeneration stations, 33 solar facilities, 9 wind facilities, 1 biomass facility, and 1 landfill gas facility. As of February 22, 2017, it had 44,000 megawatts of generating capacity and 1,500 billion cubic feet of combined natural gas consumption and throughput volume serving 9 million electric and gas utility customers. The company also provides digital wireless communications services with various communication options, including push to talk, cellular service, text messaging, wireless Internet access, and wireless data. The Southern Company was founded in 1945 and is headquartered in Atlanta, Georgia.
Looks like a decent entry for anybody who wants to add a defensive Buy-n-Hold to their portfolio. SO is oversold on the daily, and the weekly looks like the current range is intact. Current divy is just under 5%. For traders, one possible play with good risk/reward ratio is to buy the Jan2019 calls. I like the 50 strike for about 1.25. The delta is low at .37, but that'll also help preserve your initial investment if SO drops a bit more from here. Caveat: A bet on SO is, in many respects, a bet on nuclear. Unlike SCANA's abandonment of two new plants in South Carolina, Southern's Vogtle project in Georgia is full steam ahead with ratepayers in Georgia recently giving the go-ahead to proceed with construction despite cost overruns. FWIW.
For long-term buy and holds like you guys are talking about, entry price doesn't matter all that much, but might as well get a good entry while you can! Looks like a decent price to get in if you want it at some point. Currently oversold and just bounced off support.
Ha ha! Investors who are also traders I think are programmed to seek best entry possible! Investors might use a couple additional indicators, like price relative to yield on something like SO, which is also flashing "buy." Widest bullish spread between price and yield since 2015 Q4.
