Thoughts on AES?

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It seems to have fallen into value territory for me.
– Good dividend
– Low P/E

How do you view the company? Is there something I am missing?

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Asked on December 16, 2024 12:58 pm
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The company is getting hit a bit from the current Trump election results, much like many other producers. There is a risk that Trump could remove particular renewable energy tax credits.

Trump's administration may target a wide variety of renewable energy, such as tax credits for solar panels and wind energy projects. The potential rollback of these credits could impact companies involved in renewable energy development, including AES Corporation, by increasing project costs.

That said, the company does look cheap here. The only difficulty will be trying to figure out where this one will bottom out. It has a lot of regulatory risk at this point in time. As a long-term buy, it seems like a solid option. However, I'd be comfortable facing short-term volatility if I was going to add.

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Posted by Dan Kent
Answered on December 17, 2024 8:19 am