WPL delivered its March quarterly update yesterday which received a mixed reception on a day when the whole Energy Sector came under intense pressure. Revenue and production slipped slightly but higher oil prices led to sales of $3.3 billion, more than double the same period last year leading to some expected positive comments from the CEO. Stock/sector weakness allowed us to follow our much-flagged plan yesterday and allocate 3% of our Flagship Growth Portfolio into the energy play, we were “hoping” for closer to $30 but the stock bounced very quickly from its mid-morning $30 low however our entry was still close to the stocks lowest level since early March.
Similar to many names in the Resources Sector we are currently looking for some range trading by WPL in the coming months, not surprisingly in today’s new volatile environment across a fairly wide 20% range.
- MM is looking to average our position around $29 and take profit ~$35.
MM is bullish WPL ~$30
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