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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (36978)3/16/2010 9:44:33 AM
From: E_K_S  Read Replies (2) of 78750
 
RE: Dominion Resources, Inc. (D)

Hi Spekulatius - What's your valuation criteria with D where you feel it is currently over valued?

The stock has had a pretty good run since it was mentioned on this thread (up 30% from 5/2010). The forward PE of 12.1 seems reasonable compared to other utilities. The 4.6% dividend is still at a fair level.

I guess if you compare a 2 year chart with the UTY index and DJI index, D has out performed and money could be deployed else where for a better return.
finance.yahoo.com^uty+^dji;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

My problem is where do you deploy the funds to get a similar dividend and better long term upside. D may have 10%-15% left to the upside especially if the FED signals that they plan to maintains low rate for the foreseeable future (ie longer term: 12-18 months).

EKS
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