Sergio
This a copy without permission from a PM, but I think that it is worth a closer look for the folio.
CMS:
Stochastics and MACD turning positive. Chart is extremely oversold and price is far from Short EMA. Also notice Today CMS broke out the downtrend started with that gap down some weeks ago; 1 minute chart is looking very bullish, building a bullish channel.
Other positive factors are supporting a reaction:
10% of the float is short (13.4Million shares); it looks very likely that most shorts will take their profits and cover.
Cheap Fundamentals: for 2003, company provided an EPS estimate in the $0.80-0.90 range. With a P/E=5, CMS is with RRI, the most undervalued in Sector, but CMS has lower Risk, No worries to pay down Debt during 2003 and 2004
S&P comments on CMS Energy:
CMS's liquidity position has dramatically improved as a result of the Panhandle Pipeline sale, which will enable the company to adequately meet about $1.3 billion of debt and bank facility maturities in 2003. Currently, CMS is nearly fully drawn under its $1.2 billion of bank facilities, although the company holds cash on hand from recently completed asset sales. Additional planned asset sales, some of which will include the release of collateral and internal cash flow generation, should enable the company to meet about $1 billion of maturities in 2004.
We may have looked at CMS in the recent past. It appears to me, just at the quick glance that the stock got caught up in the Enron downdraft, but in time, will recover nicely.
The PM'er is spot on with the TA IMO. Sounds like he has been a silent student for some time. LOL
Ken |
