Special Delivery: 1332% on ABBV & 700% on SU. Now Watch AES get Charred! (AES, ABBV, SU)

AES Corporation (NYSE: AES) describes itself with the usual corporate fakery that’s so much the norm these days.

They talk about “accelerating the future of energy…together with our many stakeholders.”

They lie about “improving lives by delivering the greener, smarter energy solutions the world needs.”

The boast wokefully about “our diverse workforce…committed to continuous innovation and… strategic energy transitions.”

And the whole thing is plum arsitude.

What they mean to say, in fact, is that they generate electricity from coal.

That’s it.

Dirty old coal.

They may be experimenting with other means of generating and selling energy, but for now…

So…

Don’t believe the hype.

Before we get to that charred trade, however, we have two to close.

We start with our SU trade, whose details can be found HERE.

In brief, we’re holding a debit of $0.20 and the June 16th 29 synthetic short.

And…?

And we’ve waited long enough on this one.

The short CALL can be repurchased for $0.82 and the long PUT closed out for $1.37.

Get it done and you exit with $0.35 NET on an initial outlay of $0.05.

Call it 700%.

AND MOVE ON!

Next, our ABBV trade, the particulars of which you can access HERE.

In summary, we’re in possession of a $2.25 credit and the May 19th 145 synthetic short.

And today…

The long PUT sells for $1.76 and the short CALL for $0.28.

Sell the former and buy back the latter and you walk clean with $3.73 NET on just $0.28 laid out.

And that makes for a solid 1332%.

Now back to John Harvard AES, our featured victim for the day.

Consider, first, some fundamentals—

• Ain’t no P/E, because there ain’t no earnings.
• Dividend Yield is 3.8%—but it’ll likely be cut because, well… there ain’t no earnings.
• Price to Book is an extraordinarily smoky 9.74 (!), and
• Debt to Equity is a comic book 16.29.  This is a screaming red flag.
• EPS this past year FELL by 31.80%, and…
• Q1 earnings, announced May 5^th, led to a prompt selloff of the stock.

So why should it get better?

It won’t.

Look at the chart—

And bring your rain gear.

‘Cause someone’s gonna get soaked.

Great G-d in Heaven, you know I love You!

Matt McAbby

Follow @HughLOHaynew