Talen Energy (TLN) financial issues led to the company decla...
Talen Energy (TLN) financial issues led to the company's bankruptcy announcement in 2022. However, this did not boost investor confidence, as it is common in the nuclear industry. The company's counterparts Energy Harbor and Illuminate also suffered the same fate, but later successfully rose, and now are part of the best-performing stock Vistra (VST) in the S&P 500 index (SP500).
Today, the wind of change is strongly blowing in various forms. TLN is expected to generate growth from three different tailwinds:
1. PJM capacity prices have seen exponential growth, providing substantial revenue growth through fixed contracts.
2. Utilizing TLN's existing contract with Amazon (AMZN) to power its data centers near the Susquehanna nuclear power plant. This allows TLN to extract a premium compared to the wholesale electricity market.
🤑 Uncle's opinion: Market cap of 8.8 billion with earnings per share of 173, P/E ratio of 12 times, reasonable. Earnings per share $14.63, with over 100% increase this year, TLN has entered a growth stage. Future growth can be expected based on projected electricity demand, coupled with the support from the major shareholder Amazon.
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Today, the wind of change is strongly blowing in various forms. TLN is expected to generate growth from three different tailwinds:
1. PJM capacity prices have seen exponential growth, providing substantial revenue growth through fixed contracts.
2. Utilizing TLN's existing contract with Amazon (AMZN) to power its data centers near the Susquehanna nuclear power plant. This allows TLN to extract a premium compared to the wholesale electricity market.
🤑 Uncle's opinion: Market cap of 8.8 billion with earnings per share of 173, P/E ratio of 12 times, reasonable. Earnings per share $14.63, with over 100% increase this year, TLN has entered a growth stage. Future growth can be expected based on projected electricity demand, coupled with the support from the major shareholder Amazon.
#InvestInUSStocks
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