Dominion Resources, Inc. (NYSE:D)

CAPS Rating: 4 out of 5

An integrated gas and electric holding company. The company is engaged in the generation, transmission and distribution of power for sale in Virginia and northeastern North Carolina.

Recs

1
Player Avatar danteps (29.48) Submitted: 2/4/2009 10:54:38 AM : Underperform Start Price: $35.48 D Score: +9.99

Generally speaking, utilities are over-valued on a relative basis versus the broader equity universe. This is a rotation play as investors seek higher returns in relatively undervalued equities with a potentially superior risk return profile. Although debate may reign with regards to the efficiency of markets, it seems reasonable that investors as a whole will seek to put capital allocated for equities into those segments with lower intrinsic values. Utilities have been a "safe" harbor during the recent economic storm, but soon investors may leave the safe harbor for other destinations.

Member Avatar thisislabor (< 20) Submitted: 9/27/2009 5:10:31 AM
Recs: 0

so assuming that logic is correct, and it makes sense... will this stock not rise back up as the market corrects itself over the next 6 months to year?

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