PPl Corporation ppl

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PPl Corporationppl

• Analyst Adam Kreisher
• Thursday, November 8th

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Ppl currently

• Stock Price
• 49.60
• 52-week range
• 52.79 33.32
• Beta
• 0.23 Reuters.com
• EPS (TTM)
• 2.38

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What they do

• Sector Utilities
• Industry Electric Utilities
• Founded in 1920 and headquartered out of
  Allentown, Pennsylvania
• Engages in the generation, transmission, and
  distribution of electricity primarily in the
  northeastern and western portions of the United
  States.

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What they do

• As of December 31, 2006, it served approximately
  5.1 million customers in Pennsylvania, the United
  Kingdom, and Latin America
• Distributes natural gas and propane
• Offers fiber optic services
• Engage in use of solar, wind, biomass and
  landfill gas renewable energy operations

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Swot analysis

• Strengths
• Services over 4 million customers in Pennsylvania
  and the United Kingdom alone
• Regionally expanding
• Going Green Products
• Good growth potential

• Weaknesses
• No national presence
• Weak internationally

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Swot analysis

• Opportunities
• Expansion
• Nationally
• Internationally
• Capitalize on going green efforts of many
  organizations

• Threats
• Keeping up with new technology and new demands
• Possible law regulations in future

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Financial ratios
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Financial ratios contd
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Valuation ratios
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Trend analysis
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Third quarter results

• Third Quarter Net Earnings
• 3Q07 322,000,000
• 3Q06 226,000,000
• Up 29.81
• YTD Net Earnings
• 2007 870,000,000
• 2006 687,000,000
• Up 21.03

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Third quarter results

• Third Quarter EPS from Net Income
• 3Q07 0.88
• 3Q06 0.56
• Up 36.36
• YTD EPS from Net Income
• 2007 2.27
• 2006 1.81
• Up 20.26

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Third quarter results

• Third Quarter DPS
• 3Q07 0.305
• 3Q06 0.275
• Up 9.83
• YTD DPS
• 2007 0.915
• 2006 0.825
• Up 9.84

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Intrinsic value

• Using Justins IMP Worksheet
• 3-Stage DDM
• 54.47
• Using 15 Margin Of Safety
• 62.64 - 46.30
• Fairly Priced at 49.60

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Ppl now

• Significant jump in revenues expected in 2010
• Selling non-producing assets
• Going green

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2-YEAR STOCK CHART
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COMPARISON WITH COMPETITORS AND SP 500
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Why buy it?

• Growth is expected to continue
• Has done well to adapt to the Going Green craze
• Strong financials and outlook
• Looking to expand
• Degenharts Dad works for PPL

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Recommendation

• Buy 50-100 shares at 50.00
• 50 shares 2,500 invested 3.21 of portfolio
• 100 shares 5,000 invested 6.42 of portfolio