4-Star Stocks Poised to Pop: Dynegy

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power producer Dynegy (NYSE: DYN) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Dynegy's business, and see what CAPS investors are saying about the stock right now.

Dynegy facts

Headquarters (founded)

Houston, Texas (1985)

Market Cap

$1.55 billion

Industry

Independent power producers and energy traders

TTM Revenue

$3.48 billion

Management

Chairman/CEO Bruce Williamson (since 2002)
CFO Holli Nichols (since 2005)

Compound Annual Revenue Growth  (over last three years)

19.9%

Competitors

Reliant Energy (NYSE: RRI)
NRG Energy (NYSE: NRG)

CAPS members bullish on DYN also bullish on

General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)

CAPS members bearish on DYN also bearish on

The Home Depot (NYSE: HD)
Google (Nasdaq: GOOG)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 493 of the 516 members who have rated Dynegy -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include roddyjoe and SurfaLot.

Last week, roddjoe touched on the power company's staying power: "[P]eople will not stop using power, plus, its close to a 52 week low. [Dynegy] will be around for a long time."

In a pitch from a few days earlier, SurfaLot taps Dynegy as a potent penny-stock asset play:

[Dynegy] sells to utilities. Price under $2/share reflects fear of being unable to rollover debt ([Dynegy] does not have to do this until 2011) and depression fears. ... Even in these worst case scenarios, the book value of this company is 5x current stock price and asset sales/liquidation value of company (incl. lt debt) would pay off common stockholders.

What do you think about Dynegy, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick, Home Depot is an Inside Value recommendation, and Google is a choice of Rule Breakers. The Fool's disclosure policy always gets a perfect score.

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12/2/2009 1:52 PM
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