Quick Win Money Stock Prediction by the Algorithm: NRG–A Bet On Big Names

Quick Win by the Algorithm

On July 13, 2017, the I Know First algorithm issued a bullish forecast for NRG Energy Inc. (NYSE: NRG), with a signal of 94.41 and a predictability of 0.32. In accordance with the forecast, the company’s stock price rocketed by 14.32% in 7 days.

QUICK WIN

NRG Energy, Inc. is an integrated power company engaged in producing, selling and delivering energy and energy products and services. The company primarily operates in the US. The company’s has two headquarters, in Princeton and in New Jersey. NRG is an electricity provider that serves almost 3 million residential and commercial customers throughout the U.S.

QUICK WIN

NRG surged from $22.20 on July 13 to $24.11 on July 20, 2017. This handsome increase resulted from the announcement on July 12, 2017 to restructure the company.

Transformation plan fueled stock price soaring NRG announced the plan to restructure the company, according to which NRG will divest 50% to 100% of its NRG Yield renewable energy business, and some of its conventional energy assets, including coal and natural gas plants. According to the company, this plan will eventually result in a $4 billion assets disposal. Furthermore, it would help remove $13 billion in debt and generate $6.3 billion in cash through 2020, which would largely benefit equity holders if successfully executed.

This may seem like a lofty ambition, but why is the market buying it? Other than the obvious benefits potentially from financial condition improvement. The reason probably lies into the heavyweights behind this proposal. The plan is lobbied by Paul Singer, CEO and head fund manager of Elliott Management Corporation, and Charles Wilder, who turned around TXU Corporation and positioned it for $45 billion, the largest leveraged buyout in history. In conclusion, the market was more likely to be betting on the success of Singer and Wilder than the takeoff of NRG Energy, but it is not irrational.

Again, I Know First Algorithm showed great ability in forecasting market movement.

This bullish forecast on NRG was sent to current I Know First subscribers on July 13, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.