Joplin Tornado Blows Away Empire District's Dividend

Empire District Electric Company is yet another victim of the horrific devastation from the tornado in Joplin this past weekend. The stock had initially declined modestly earlier this week, but it plunged yesterday by 15%, wiping out $125mm in market value after the company suspended its dividend for two quarters. The company cited 8-10k customers that will be out of service for the forseeable future that will result in 10-15% loss of revenue and damage repair of $20-$30mm before potential insurance recoveries.click to enlargeIs this a potential opportunity? It would appear so, though it will take time to play out and likely not reattain its recent 23+ level for at least a year.If the company is correct that the dividend will be eliminated for just 2 quarters (saving about $20mm), shareholders are out .64 per share, significantly less than the 2.95 points it lost yesterday. Perhaps the... Read more

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