Wednesday, October 24, 2012

Florida Utility Corp Stock Prices Up an Average 44% During Obama’s Presidential Term

From an extensive review of SEC filings, I found two Utility Corps headquartered in the State of Florida with externally audited under US Generally Accepted Accounting Principles (US GAAP) After-tax Net Income or Net Loss from Continuing Operations of at least $100 mil in any of the most recent five fiscal years.

These two Florida Utility Corps generated a total earnings increase of 22% during the Obama Administration, going from $1,801 mil in 2008 to $2,196 mil in 2011.

Below here are the Audited After-tax Net Income of these two Florida Utility Corps 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
Florida Utility Corps

Nextera Energy Juno Beach FL 1,923 1,957 1,615 1,639 1,312
TECO Energy Tampa FL 273 240 214 162 317

Total of Both

2,196 2,197 1,829 1,801 1,629

Annual Earnings Percentage Change
0% 20% 2% 11%

Three Year (2008-2011) Earnings Increase Under Obama





Which takes us to Florida Utility Corp stock prices since President Obama took office.

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

These two Florida Utility Corps had an average stock market price increase of very impressive 44% since President Obama took office on January 20, 2009.

And this strong 44% average stock market price increase during the Obama Administration is significantly 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 Florida 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.

All Florida 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 fine Florida Utility companies during the Obama Administration.

And these same Florida 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 are the common stock market closing prices of both of these Florida Utility Corps at both yesterday's date, October 23, 2012, 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 Percentage

City State Price Price Increase

HQs HQs 10-23-12 1-16-09 (Decrease)

Florida Utility Corps

TECO Energy Tampa FL $17.59 $12.09 45%
Nextera Energy Juno Beach FL $70.76 $49.83 42%

Average Increase of Both