US Big Retail Corps 3Q 2012 Earnings Up a Solid, High Quality 6%

I found 38 US Retail Corps, which file with the SEC, which have already reported their calendar 3Q 2012 earnings, and which also generated Core, Ongoing Pretax Income or Pretax Loss of more than $100 mil in either the 3Q 2012 or in the 3Q 2011.

The four Retail Corps which should surpass the $100 mil profit target, but which are not included below because they haven't yet reported their calendar 3Q 2012 earnings, are Publix Super Markets, Starbucks, Whole Foods Market, and Sally Beauty Holdings.

These 38 US Retail Corps had Total Pretax Income in the 3Q 2012 of $21,636 mil, up a very solid 6.4%, from the 3Q 2011, which is pretty impressive in these pretty tough economic times in the US, and extremely tough economic times in Europe.

Walmart dominates these 38 US Big Retailers, comprising 29% of 3Q 2012 Total Pretax Income of all 38.  Walmart had a strong 3Q 2012, with Pretax Earnings growth of 7% over the prior year's quarter.

As you can see from the below list, many of these US Retailers had outstanding earnings growth in the 3Q 2012 over the prior year's quarter.

And the quality of this total 6.4% earnings growth in the 3Q 2012 is high.

Amazon's reported earnings declined by $152 mil in the 3Q 2012, but that is really misleading in real earnings' terms.  Amazon's Net Sales increased 27% in the 3Q 2012, but its reported Pretax Earnings were substantially softened by its many huge investments it is making, which will benefit Amazon to a great extent in the future, but which also get reflected in earnings as charges under US Generally Accepted Accounting Principles.  For instance, Amazon's Technology and Content Expense in the 3Q 2012 was $423 mil higher, or 55% above, the prior year's quarter. 

Nordstrom's 3Q 2012 earnings decline is due to the timing of its Anniversary Sale.

Extreme weakness in the European economy, coupled with a weaker Euro, hindered the US Big Retailers with a large presence there like McDonalds.

And given the very high quality of each of the four US Retailers that haven't reported their earnings yet, my hunch is that this 6.4% earnings growth will increase by a bit after they report their 3Q 2012 earnings.

Further, it should also be pointed out that the Total 3Q 2012 Earnings Per Share growth of these 38 Big US Retailers is a bit higher than this 6.4% Total Pretax Earnings growth.  This is due to many of these large US Retailers having substantial stock buyback programs.

For instance, the GAP's Pretax Earnings increase of a very impressive 29% in the most recent quarter turns into an even much more impressive 40% increase on an Earnings Per Share basis.  No, I'm not kidding.  This is what the GAP's massive stock buyback program does.  And Walmart's After-tax Net Income growth of 5.7% turns into an 8.3% Earnings Per Share growth, again due to its huge stock buybacks.

Can you imagine what the earnings growth of these US Retailers would be if you had a US Congress that worked with the President, rather than one that has intentionally stymied US economic growth and US job creation until after the November 2012 election.....a heartless, mean-spirited Party over suffering People strategy, from my perspective. 

And particularly because all of the Republicans in both the US House and the US Senate have voted against the tax cuts for everyone, starting on January 1, 2013, on the first $250,000 of everyone's taxable income, US Retailers will be hurt markedly by the resultant high level of consumer uncertainty in the critically key Thanksgiving to Christmas 2012 sales period. 

Below is the Ongoing, Core Pretax Income (PTI) or Pretax Loss (PTL) of these 38 Big US Retailers for both the 3Q 2012 and the 3Q 2011.

				Increase	Increase
	State	PTI(L)	PTI(L)	(Decrease)	(Decrease)
	HQs	3Q 2012	3Q 2011	Amount	%
		mils $s	mils $s	mils $s
Big Retail Corps
Walmart	AR	6,193	5,805	388	7%
Home Depot	GA	2,418	2,148	270	13%
McDonalds	IL	2,154	2,263	(109)	-5%
Lowes	NC	1,197	1,329	(132)	-10%
Target	MN	1,071	1,109	(38)	-3%
Costco	WA	965	772	193	25%
TJX	MA	683	559	124	22%
Yum Brands	KY	639	456	183	40%
Autozone	TN	502	470	32	7%
Macy's	OH	449	395	54	14%
Kroger	OH	429	391	38	10%
GAP	CA	405	313	92	29%
Kohls	WI	377	475	(98)	-21%
Bed Bath & Beyond	NJ	365	370	(5)	-1%
Sherwin Williams	OH	343	260	83	32%
Dollar General	TN	325	231	94	41%
Ross Stores	CA	297	242	55	23%
OReilly Automotive	MO	254	235	19	8%
Nordstrom	WA	250	290	(40)	-14%
Limited Brands	OH	229	242	(13)	-5%
Dollar Tree	VA	183	152	31	20%
CarMax	VA	181	180	1	1%
Staples	MA	178	237	(59)	-25%
Fastenal	MN	176	155	21	14%
Advance Auto Parts	VA	161	181	(20)	-11%
Safeway	CA	158	196	(38)	-19%
Darden Restaurants	FL	146	147	(1)	-1%
Tiffany	NY	140	131	9	7%
Autonation	FL	133	116	17	15%
Dick's Sporting Goods	PA	133	108	25	23%
Family Dollar Stores	NC	127	125	2	2%
Petsmart	AZ	123	96	27	28%
JC Penney	TX	118	47	71	151%
Chipotle Mexican Grill	CO	118	98	20	20%
Best Buy	MN	100	235	(135)	-57%
Supervalu	MN	96	(108)	204	189%
Amazon	WA	(22)	130	(152)	-117%
Sears Holding	IL	(158)	(247)	89	36%
Total all 38		21,636	20,334	1,302	6.4%

Colorado Smallest Public Companies With Incredibly Robust Stock Market Gains Since President Obama Took Office

In my two recent posts on Colorado Largest Corps, from an extensive review of SEC filings, I found a very impressive number of 82 Corps headquartered in the clearly highly entrepreneurial mecca State of Colorado, which generated Core, Ongoing Pretax Income or Pretax Loss of at least $10 mil each in any of the most recent three fiscal years.

In one of these earlier posts, I found that these 82 Largest Colorado Corps filing with the SEC had Audited under US Generally Accepted Accounting Principles (US GAAP) Total After-tax Net Income of $10.0 bil in the most recent fiscal year 2011, which was a profit improvement of a massive $13.9 bil as compared with the $3.9 bil of After-tax Net Loss generated by these same 82 Colorado companies just three years earlier in 2008, the last year of the Bush/Cheney Administration.

Colorado 82 Largest Corps 2011 Earnings 

Since corporate earnings drive stock prices, in one of these earlier posts on Colorado Largest Corps, I addressed just how well the stock market prices of these Colorado Corps have performed since President Obama took office.

Of these 82 Colorado Corps, 58 of them had their common stock trading on both January 16, 2009, which is the last day stocks traded before President Obama took office, and on October 10, 2012.

These 58 Colorado Corps had an average stock market price increase of a very impressive 179% since President Obama took office on January 20, 2009.  This is way more than double the increase in both the S&P 500 Index, which increased by 69%, and the Dow Industrials Index, which increased by 61%, both during the same time span.

Colorado 58 Largest Corp Stock Prices Up An Average 179% Since President Obama Took Office 

So that's clearly fantastic, but what about the even smaller Colorado Publicly-held Companies.....that is, one's with Ongoing, Core Pretax Income or Loss below $10 mil in each of the most recent three fiscal years?

I did a quick review of SEC filings, and there aren't a huge number of these smallest Colorado Corps, which had their common stock trading both presently and on January 16, 2009.  I did find some with a smaller stock market price increase, but I found 17 of these Smallest Colorado Public Companies which experienced very robust stock market appreciation during the Obama Administration.

These 17 Smallest Colorado Public Companies had an average stock market price increase of an exceptional 274% during the Obama Administration.  It should be pointed out that mathematically the highest stock market increases should be much higher for the Largest Corps, since these largest companies have unlimited earnings growth potential, whereas the smallest companies have to have their earnings within a range of plus or minus $10 mil.  But even with this mathematical constraint, these superb Colorado Smallest Public Companies still did just fantastically on the stock market appreciation front.  That's quite a feat, and speaks to the exceptionally strong entrepreneurial spirit of the entire State of Colorado.

Below here are the common stock market closing prices of each of these 17 Colorado Smallest Public Companies, with very robust stock price appreciation during the Obama Administration, on the most recent October 26, 2012 date, and also on the date just before President Obama took office, as well as the percentage stock market price changes for this period of time.

		Market	Market
	Colorado	Price	Price	Percentage
	HQs	10-26-12	1-16-09	Increase
Colorado Smallest Public Companies
Kodiak Oil and Gas	Denver	$9.14	$0.40	2185%
American Eagle Energy	Littleton	$0.78	$0.18	333%
General Moly	Lakewood	$3.50	$0.90	289%
Midway Gold	Englewood	$1.66	$0.43	286%
Evolving Systems	Englewood	$6.55	$1.94	238%
Allied Motion Technologies	Englewood	$6.52	$2.07	215%
Bion Environmental Technologies	Crestone	$1.96	$0.64	206%
Heska	Loveland	$8.65	$3.10	179%
Vista Gold	Littleton	$3.34	$1.47	127%
Emerald Oil	Denver	$5.27	$2.38	121%
Golden Star Resources	Littleton	$2.09	$1.09	92%
Century Casinos	Colorado Springs	$2.89	$1.65	75%
Rocky Mountain Chocolate Factory	Durango	$10.55	$6.24	69%
Ramtrom International	Colorado Springs	$3.09	$1.83	69%
Corgenix Medical Corp	Broomfield	$0.13	$0.08	63%
Accelr8 Technology	Denver	$4.00	$2.49	61%
Birner Dental Management Services	Denver	$16.88	$11.57	46%
Average Increase: all 17 Colorado Smallest Public Companies				274%

So, it's not just the largest Colorado Corps which experienced exceptionally strong stock market price appreciation during the Obama Administration.  There were also quite a few of the very smallest Colorado Corps which did likewise.  These across-the-board blow out stock market appreciation percentages, for both the largest and the smallest Colorado Publicly-Held Companies, are enough to give someone a Rocky Mountain High.

Ohio Smallest Public Companies With Robust Stock Market Gains Since President Obama Took Office

In my two recent posts on Ohio Largest Corps, from an extensive review of SEC filings, I found 127 Corps headquartered in the State of Ohio, which generated Core, Ongoing Pretax Income or Pretax Loss of at least $10 mil each in any of the most recent three fiscal years.

In one of these earlier posts, I found that these 127 Largest Ohio Corps filing with the SEC had Audited under US Generally Accepted Accounting Principles (US GAAP) Total After-tax Net Income of $32.9 bil in the most recent fiscal year 2011, which was a profit improvement of a massive $27.4 bil as compared with the $5.5 bil of After-tax Net Income generated by these same 127 Ohio companies just three years earlier in 2008, the last year of the Bush/Cheney Administration.

Ohio Corp 2011 Earnings 

Since corporate earnings drive stock prices, in one of these earlier posts on Ohio Largest Corps, I addressed just how well the stock market prices of these Ohio Corps have performed since President Obama took office.

Of these 127 Ohio Corps, 106 of them had their common stock trading on both January 16, 2009, which is the last day stocks traded before President Obama took office, and on October 9, 2012.

These 106 Ohio Corps had an average stock market price increase of a very impressive 161% since President Obama took office on January 20, 2009.  This is more than double the increase in both the S&P 500 Index, which increased by 69%, and the Dow Industrials Index, which increased by 61%, both during the same time span.

Ohio 106 Largest Corps Stock Prices Up An Average 161% Since President Obama Took Office 

So that's fantastic, but what about the even smaller Ohio Publicly-held Companies.....that is, one's with Ongoing, Core Pretax Income or Loss below $10 mil in each of the most recent three fiscal years?

I did a quick review of SEC filings, and there aren't a huge number of these smallest Ohio Corps, which had their common stock trading both presently and on January 16, 2009.  I did find some with a smaller stock market price increase, but I found 11 of these Smallest Ohio Public Companies which experienced very robust stock market appreciation during the Obama Administration.

These 11 Smallest Ohio Public Companies had an average stock market price increase of 146% during the Obama Administration.  It should be pointed out that mathematically the highest stock market increases should be much higher for the Largest Corps, since these largest companies have unlimited earnings growth potential, whereas the smallest companies have to have their earnings within a range of plus or minus $10 mil.

I find it interesting that four of the top five with the highest stock market percentage increases are Health Care companies.

Below here are the common stock market closing prices of each of these 11 Ohio Smallest Companies on the most recent October 26, 2012 date, and also at the date just before President Obama took office, as well as the percentage stock market price changes for this period of time.

		Market	Market
	Ohio	Price	Price	Percentage
	HQs	10-26-12	1-16-09	Increase
Ohio Smallest Public Companies
Adcare Health Systems	Springfield	$4.50	$1.09	313%
Navidea Biopharmaceuticals	Dublin	$2.75	$0.70	293%
AtriCure	West Chester	$6.30	$1.86	239%
Glimcher Realty Trust	Columbus	$10.55	$3.17	233%
Streamline Health Solutions	Cincinnati	$5.87	$1.91	207%
Our Pet's Co	Fairport Harbor	$0.41	$0.22	86%
FFD Financial	Dover	$17.30	$10.54	64%
Wayne Savings Bancshares	Wooster	$9.05	$6.01	51%
Croghan Bancshares	Fremont	$32.90	$23.00	43%
Consumers Bancorp	Minerva	$17.00	$12.15	40%
Commercial Bancshares	Upper Sandusky	$19.52	$14.72	33%
Average Increase: all 11 Ohio Smallest Public Companies				146%

So, it's not just the largest Ohio Corps which experienced very strong stock market price appreciation during the Obama Administration.  There were also some of the very smallest Ohio Corps which did likewise.

Virginia Smallest Public Companies With Robust Stock Market Gains Since President Obama Took Office

In my two recent posts on Virginia Largest Corps, from an extensive review of SEC filings, I found 98 Corps headquartered in the State of Virginia, which generated Core, Ongoing Pretax Income or Pretax Loss of at least $10 mil each in any of the most recent three fiscal years.

In one of these earlier posts, I found that these 98 Largest Virginia Corps filing with the SEC had Audited under US Generally Accepted Accounting Principles (US GAAP) Total After-tax Net Income of $10.5 bil in the most recent fiscal year 2011, which was a profit improvement of a massive $57.1 bil as compared with the $46.6 bil of After-tax Net Loss generated by these same 98 Virginia companies just three years earlier in 2008, the last year of the Bush/Cheney Administration.

Virginia Corp 2011 Earnings 

Included in the above total earnings and loss numbers are those related to Freddie Mac.  If Freddie Mac is excluded, the remaining 97 Largest Virginia Corps generated a Total After-tax Net Income of $15.7 bil in the most recent fiscal year 2011, up $12.2 bil, or 351% above the comparable Net Income amount of $3.5 bil earned by these same 97 Virginia companies three years earlier in 2008.

Since corporate earnings drive stock prices, in one of these earlier posts on Virginia Largest Corps, I addressed just how well the stock market prices of these Virginia Corps have performed since President Obama took office.

Of these 98 Virginia Corps, 80 of them had their common stock trading on both January 16, 2009, which is the last day stocks traded before President Obama took office, and on October 10, 2012.

These 80 Virginia Corps had an average stock market price increase of a very robust 97% since President Obama took office on January 20, 2009.  This is far better than the increase in both the S&P 500 Index, which increased by 69%, and the Dow Industrials Index, which increased by 61%, both during the identical time span.

Virginia 80 Largest Corps Stock Prices Up An Average 97% Since President Obama Took Office


So that's fantastic, but what about the even smaller Virginia Publicly-held Companies.....that is, one's with Ongoing, Core Pretax Income or Loss below $10 mil in each of the most recent three fiscal years?

I did a quick review of SEC filings, and there aren't a whole lot of these smallest Virginia Corps, which had their common stock trading both presently and on January 16, 2009.  I did find some with a smaller stock market price increase, but I found eight of these smallest Virginia Public Companies which experienced very robust stock market appreciation during the Obama Administration.

These 8 Virginia Smallest Public Companies had an average stock market price increase of 131% during the Obama Administration.  It should be pointed out that mathematically the highest stock market increases should be much higher for the Largest Corps, since these largest companies have unlimited earnings growth potential, whereas the smallest companies have to have their earnings within a range of plus or minus $10 mil.

Below here are the common stock market closing prices of each of these 8 Virginia Smallest Companies on the most recent October 26, 2012 date, and also at the date just before President Obama took office, as well as the percentage stock market price changes for this period of time.

		Market	Market
	Virginia	Price	Price	Percentage
	HQs	10-26-12	1-16-09	Increase
Virginia Smallest Public Companies
Global Telecom & Technology	McLean	$2.69	$0.48	460%
Alliance Bankshares	Chantilly	$4.40	$1.50	193%
MHI Hospitality	Williamsburg	$3.68	$1.50	145%
Hooker Furniture	Martinsville	$13.69	$8.06	70%
Geeknet	Fairfax	$17.86	$11.20	59%
Community Financial	Staunton	$5.80	$3.80	53%
RGC Resources	Roanoke	$17.84	$13.25	35%
Optical Cable	Roanoke	$4.20	$3.14	34%
Average Increase: all 8 Virginia Smallest Public Companies				131%

So, it's not just the largest Virginia Corps which experienced very strong stock market price appreciation during the Obama Administration.  There were also some of the very smallest Virginia Corps which did likewise.

And clearly, this was driven by substantially improved earnings performance during the Obama Administration.  In fact, these 8 Smallest Virginia Public Companies generated Total Pretax Income of $11.3 mil in the most recent 2011 fiscal year, which was a $64.7 mil profit improvement as compared with the Total Pretax Loss of $53.4 for 2008, the last year of the Bush/Cheney Administration.

Below here are the Audited Pretax Income or Loss for each of the most recent four fiscal years for each of these 8 Virginia Smallest Public Companies with the very robust stock market appreciation.

		Pretax	Pretax	Pretax	Pretax
	Virginia	Income	Income	Income	Income
	HQs	2011	2010	2009	2008
		mil $s	mil $s	mil $s	mil $s
Virginia Smallest Public Companies
RGC Resources	Roanoke	7.5	7.1	7.9	6.8
Hooker Furniture	Martinsville	6.9	4.2	5.1	10.7
Community Financial	Staunton	2.8	2.4	5.0	(9.6)
Global Telecom & Technology	McLean	1.0	1.5	0.5	(43.7)
Optical Cable	Roanoke	0.9	(5.9)	(2.6)	3.5
Alliance Bankshares	Chantilly	(1.0)	1.0	(5.7)	(14.5)
Geeknet	Fairfax	(1.2)	(4.4)	(13.9)	(4.2)
MHI Hospitality	Williamsburg	(5.6)	(3.0)	(4.8)	(2.4)
Total of all 8		11.3	2.9	(8.5)	(53.4)
Annual Pretax Income Increase		8.4	11.4	44.9
Three Year (2008-1011) Pretax Income Increase During Obama Administration
…..Amount		64.7
…..Percentage		121%

Next, I'm very interested in finding out how Ohio's Smallest Public Companies come out on this same issue.  I have a hunch that there are even more of them with very robust stock market growth than those in Virginia, particularly since there are so many excellent Ohio manufacturing companies, helped by the Auto Rescue or by the Obama Economic Stimulus, or by both, whose earnings have been on fire during the Obama Administration, and this should also have a nice spillover effect on companies in Ohio's other industries.

New Mexico Utility Corp PNM Resources Stock Price Up 104% During Obama’s Presidential Term

From an extensive review of SEC filings, I found one Utility Corp.....PNM Resources.....headquartered in the State of New Mexico with externally audited After-tax Net Income or Net Loss from Continuing Operations of at least $100 mil in any of the most recent five fiscal years.

I retrieved all of the below stock market closing price information from the excellent Big Charts.com website.

PNM Resources stock market price increased by a truly incredible 104% since President Obama took office on January 20, 2009.

And this off-the-charts 104% stock market price increase during the Obama Administration is understated in real terms since it does not include the huge amount of cash dividends PNM Resources common stock investors have received in the past 15 quarters of the Obama Administration.

Investors buy Utility Stocks mainly for the robust cash dividends they receive, not for longer-term stock price appreciation.  

And yeah, the Obama Administration did play a key role in this very robust PNM Resources stock price increase.

With its wise actions to fix the broken US financial system, the Obama Administration substantially reduced the elevated risk which was in Utility Stocks after the 2008 financial collapse.  These actions resulted in increasing the stock prices of Utility Stocks.

Further, with the Obama Administration working closely with the Fed, interest rates were substantially reduced, thereby significantly benefiting Utility Corps, which have a very heavy debt load due to their substantial investments in Property, Plant and Equipment.  Thus, Utility Corps are now able to borrow at much cheaper interest rates.

All PNM Resources executives, all of their employees, their Boards of Directors, and their stockholders have to all be very happy with the stock market performance of PNM Resources during the Obama Administration.

And these same New Mexico citizens also must be very pleased with how the Obama Administration worked so hard and very effectively on so many fronts to fix the clearly broken US financial system and to also create a US economic environment that permitted companies to flat out flourish.  This highly successful effort created a robust US economic environment which was quite a change from what existed in the just horrible financial meltdown, near Depression year of 2008.

Below here is the common stock market closing price of PNM Resources on both Tuesday, October 23, 2012, and also on the date just before President Obama took office, as well as the percentage stock market price changes for this period of time.

			Market	Market	Percentage
	City	State	Price	Price	Increase
	HQs	HQs	10-23-12	1-16-09	(Decrease)
New Mexico Utility Corp
PNM Resources	Albuquerque	NM	$21.76	$10.67	104%

Michigan Utility Corp Stock Prices Up an Average 91% During Obama’s Presidential Term

From an extensive review of SEC filings, I found three Utility Corps headquartered in the State of Michigan with externally audited After-tax Net Income or Net Loss from Continuing Operations of at least $100 mil in any of the most recent five fiscal years.

I retrieved all of the below stock market closing price information from the excellent Big Charts.com website.

These three Michigan Utility Corps had an average stock market price increase of a truly remarkable 91% since President Obama took office on January 20, 2009.

And this off-the-charts 91% average stock market price increase during the Obama Administration is understated in real terms since it does not include the huge amount of cash dividends Utility Corp investors have received in the past 15 quarters of the Obama Administration.

Investors buy Utility Stocks mainly for the robust cash dividends they receive, not for longer-term stock price appreciation.  

And yeah, the Obama Administration did play a key role in this very robust Michigan Utility Corp stock price increase.

With its wise actions to fix the broken US financial system, the Obama Administration substantially reduced the elevated risk which was in Utility Stocks after the 2008 financial collapse.  These actions resulted in increasing the stock prices of Utility Stocks.

Further, with the Obama Administration working closely with the Fed, interest rates were substantially reduced, thereby significantly benefiting Utility Corps, which have a very heavy debt load due to their substantial investments in Property, Plant and Equipment.  Thus, Utility Corps are now able to borrow at much cheaper interest rates.

And in addition, the Obama Administration rescued the Auto Industry, which clearly had substantial spillover economic benefits to Michigan's Utility Industry.

All Michigan Utility Corp executives, all of their employees, their Boards of Directors, and their stockholders have to all be very happy with the stock market performance of their Michigan Utility companies during the Obama Administration.

And these same Michigan citizens also must be very pleased with how the Obama Administration worked so hard and very effectively on so many fronts to rescue the Auto Industry, to fix the clearly broken US financial system, and to also create a US economic environment that permitted companies to flat out flourish.  This highly successful effort created a robust US economic environment which was quite a change from what existed in the just horrible financial meltdown, near Depression year of 2008.

Below here are the common stock market closing prices of these three Michigan Utility Corps on both Tuesday, October 23, 2012, and also on the date just before President Obama took office, as well as the percentage stock market price changes for this period of time.

			Market	Market	Percentage
	City	State	Price	Price	Increase
	HQs	HQs	10-23-12	1-16-09	(Decrease)
Michigan Utility Corps
CMS Energy	Jackson	MI	$23.97	$11.26	113%
ITC Holdings	Novi	MI	$77.43	$41.51	87%
DTE Energy	Detroit	MI	$60.74	$34.75	75%
Average Increase of all 3					91%

Iowa Utility Giant MidAmerican Energy Holdings Co Generated Consistently Strong Earnings During the Obama Administration

Iowa doesn't have any large Utility companies whose common stocks trade.  The huge Des Moines-based MidAmerican Energy Holdings Co (MEHC) is wholly-owned by Berkshire Hathaway.

However, MEHC does file its separate financial statements with the SEC.

And so do two large Utility Company components of MEHC.....PacifiCorp and MidAmerican Energy Co.

PacifiCorp is based in Portland, OR and provides utility services in many Northwestern US States.

MidAmerican Energy Co. provides utility services in some Midwestern US States. 

So, just how did these Utility companies perform during the Obama Administration?

Well, just dandy.....just incredibly consistently stable earnings in all years.

In 2011, MEHC's total earnings were $1,352 mil, up 10% from the $1,225 mil of earnings in 2008.  MEHC's 2008 reported earnings were $1,871 mil, but this included a huge, clearly unusual $646 mil gain resulting from the termination of MEHC's merger agreement with Constellation Energy.  To make 2008 earnings more meaningful, I excluded it in deriving my above $1,225 mil.

Below here are the Audited After-tax Net Income of each of these three Utility Companies for each of the most recent five years.

			2011	2010	2009	2008	2007
			Net	Net	Net	Net	Net
	City	State	Income	Income	Income	Income	Income
	HQs	HQs	(Loss)	(Loss)	(Loss)	(Loss)	(Loss)
			mil $s	mil $s	mil $s	mil $s	mil $s
PacifiCorp	Portland	OR	555	566	550	465	445
MidAmerican Energy Co	Des Moines	IA	319	357	350	343	325
Rest of MEHC			478	387	288	417	449
= MidAmerican Energy Holdings Co (MEHC)	Des Moines	IA	1,352	1,310	1,188	1,225	1,219
Annual Earnings Percentage Change			3%	10%	-3%	0%
Three Year (2008-2011) Earnings Increase Under Obama
…..Amount			127
…..Percentage			10%

OK, so that's cool.  MEHC looks like a great Utility company.  So, how has this been reflected by the stock market?

Well, MEHC's stock isn't public, but its parent's common stock, that of Berkshire Hathaway, does trade.  Its common stock price has increased by a very healthy 44% during the Obama Administration.

And MEHC's Net Income comprised 13% of Berkshire Hathaway's Total Net Income in 2011.

But clearly the intrinsic value of MEHC has increased dramatically during the Obama Administration.

In an earlier post, I showed that the 56 Largest US Utility Corps had an average stock market price increase of an incredible 47% during the Obama Administration.

And the Largest US Utility Corps had their 2011 total earnings increase by 9% over 2008, thus during the Obama Administration.

MEHC's total earnings increased by 10% during the Obama Administration.

Thus, I see no reason why MEHC's intrinsic market value wouldn't have increased reasonably close to this 47% average for all of the largest US Utility Corps.

And yeah, the Obama Administration did play a key role in this very robust Utility Corps stock price increase.

With its wise actions to fix the broken US financial system, the Obama Administration substantially reduced the elevated risk which was in Utility Stocks after the 2008 financial collapse.  These actions resulted in increasing the stock prices of Utility Stocks.

Further, with the Obama Administration working closely with the Fed, interest rates were substantially reduced, thereby significantly benefiting Utility Corps, which have a very heavy debt load due to their substantial investments in Property, Plant and Equipment.  Thus, Utility Corps are now able to borrow at much cheaper interest rates.

All MEHC Utility Corp executives, all of their employees, their Boards of Directors, and the stockholders of Berkshire Hathaway have to all be very happy with the substantial intrinsic value increase of MEHC during the Obama Administration.  And there are MEHC employees in so many states.....it's not just Iowa, but also other Midwestern US States Ilinois, South Dakota, and Nebraska and also Northwestern US States, not just Oregon, but also Utah, Wyoming, Washington, Idaho, and California.

And these same citizens also must be very pleased with how the Obama Administration worked so hard and very effectively on so many fronts to fix the clearly broken US financial system and to also create a US economic environment that permitted companies to flat out flourish.  This highly successful effort created a robust US economic environment which was quite a change from what existed in the just horrible financial meltdown, near Depression year of 2008.

Iowa also has another large Utility Corp that files with the SEC.....Cedar Rapids-based Interstate Power and Light, which is a wholly-owned subsidiary of Madison,WI-based Alliant Energy.

Interstate Power and Light has experienced very stable annual earnings, which ranged between $139 mil and $153 mil in the most recent four years, and no doubt was a significant contributor to its parent Alliant Energy's 60% stock price increase during the Obama Administration, with its stock price advancing from $27.87 per share just before President Obama took office to $44.65 on Tuesday, October 23, 2012.

Public Service Colorado is 50% of Minnesota Utility Giant Xcel Energy, Whose Stock Price is Up 53% During Obama's Presidential Term

Colorado doesn't have any large Utility companies whose common stocks trade.  The huge Public Service Co. of Colorado is wholly-owned by Xcel Energy, a Minnesota Utility giant.  Public Service Co. of Colorado does file its financial statements with the SEC.

OK, so how has Public Service Co. of Colorado done?  And also, how has its parent Xcel Energy done? Well, both just fabulously.

Public Service Co. of Colorado's Audited After-tax Net Income has increased by 34% in the past five years, going from $297 mil in 2007 to $397 mil in 2011.

Below here are the Audited After-tax Net Income of both Public Service Co. of Colorado and Xcel Energy for each of the most recent five years.

			2011	2010	2009	2008	2007
			Net	Net	Net	Net	Net
	City	State	Income	Income	Income	Income	Income
	HQs	HQs	(Loss)	(Loss)	(Loss)	(Loss)	(Loss)
			mil $s	mil $s	mil $s	mil $s	mil $s
Public Service Co. of Colorado	Denver	CO	397	400	323	340	297
Xcel Energy	Minneapolis	MN	841	752	686	646	576
Public Service Co. of Colorado Portion of Xcel Energy's Net Income			47%	53%	47%	53%	52%

With the above very robust earnings numbers of both Public Service Co. of Colorado and of Xcel Energy, it is easy for me to see why parent Xcel Energy's common stock price has increased by an incredible 53% during the Obama Administration, going from $18.28 per share just before President Obama took office to $27.89 per share on Tuesday, October 23, 2012.

And Xcel Energy's very impressive 53% stock market price increase during the Obama Administration is understated in real terms since it does not include the huge amount of cash dividends its common stock investors have received in the past 15 quarters of the Obama Administration.

Investors buy Utility Stocks mainly for the robust cash dividends they receive, not for longer-term stock price appreciation.  

And yeah, the Obama Administration did play a key role in this very robust Xcel Energy stock price increase.

With its wise actions to fix the broken US financial system, the Obama Administration substantially reduced the elevated risk which was in Utility Stocks after the 2008 financial collapse.  These actions resulted in increasing the stock prices of Utility Stocks.

Further, with the Obama Administration working closely with the Fed, interest rates were substantially reduced, thereby significantly benefiting Utility Corps, which have a very heavy debt load due to their substantial investments in Property, Plant and Equipment.  Thus, Utility Corps are now able to borrow at much cheaper interest rates.

All Colorado and Minnesota Utility Corp executives, all of their employees, their Boards of Directors, and their stockholders have to all be very happy with the stock market performance of Xcel Energy during the Obama Administration.

And these same Colorado and Minnesota citizens also must be very pleased with how the Obama Administration worked so hard and very effectively on so many fronts to fix the clearly broken US financial system and to also create a US economic environment that permitted companies to flat out flourish.  This highly successful effort created a robust US economic environment which was quite a change from what existed in the just horrible financial meltdown, near Depression year of 2008.