RE:Rapid Changes....guelph1 wrote: Does anyone have any insight as the significant daily changes of this stock, it's a utility and thus is usually semi-immune to these kind of fluctuations. I notice the short positions holding steadily. Appreciate some insight............
There is probably no single answer. Here are some thoughts.
Markets of late have been notably flighty with aggressive hedge funds, short term money and algos chasing the latest fads/hopes/sector etc. It could be anything, take your pick: crypto, FAANGS, NFTs, energy, gold, lithium, China, Europe, AI etc.
These change on a dime and on a given day the pundits could be hyping any of them.
Utilities generally suffer in increasing interest rate environments. Central banks in their quest to dampen inflation have raised rates incredibly rapidly after their equally incredible long stupor of close to zero percent. There is now a realization that at least in one important sector, housing, higher rates instead of curbing inflation are themselves a major cause. Banks have been slowing down in their raises if not actually pausing. And often we get mixed messages with the markets swinging violently one way or other as a result.
And sometimes there is so much nervous tension that ANY reason, even no reason, is a motivation to sell. Last week one day we were going along merrily in the green when suddenly at 1pm things turned ugly. No significant news could be ascertained, till someone pointed out that BoJ had raised rates. You get it.
Today you can make 4.75% in a HISA or over 5% in a one yr GIC. Better than FTS yield. On the other hand there are indications of pauses and/or lower rates by the end of '24. Utilities could be surging again particularly when those maturing GICs have to find a place for their cash.
I have been holding FTS since around 2009/2010 when it was around $28-$29. Sold half a while back and am keeping the other half for now.
With the awful, prolonged heatwave in Arizona TEP is likely going full blast.
Tomorrow at 8:30 we should get some guidance for the rest of 2023.
Cheers