Stockchase Opinions

John Stephenson Dominion Resources Inc D-N TOP PICK Feb 21, 2007

A US utility which also has E & P properties that they are looking to sell and expecting $16 billion for it. Intend to buy back stock and pay down debt. Negotiating an advanced agreement with Virginia regulators to get additional upside in cap return.
$85.390

Stock price when the opinion was issued

electrical utilities
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(A past top pick Oct 16/03. Up 1.5%.) Has a good diversity of income streams.
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Some of the diversified utilities are well-positioned. Their rate structure is based on a cost plus so oil prices do not affect them. As the economy grows, more power will be required.
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(A top pick Dec 23/03. Down 3.7%.) Still likes. Should do well with coal prices and gas prices being so high. Trading at a discount to its peers.
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Q:"What companies could profit from liquid natural gas?" A:"You want to focus on some of the utility names. It's only 3% of the market and there are large groups opposing shipments."
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4% dividend. Likes its diversity of utility, pipeline and liquefied natural gas terminals. Also has 6.2 TCF of gas and oil equivalent. Cheaper than some of its peers.
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Quality companies is very important when the Fed is tightening. Defensive pick. Over 4% dividend yield. Expects energy prices to remain high.
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You want to hold utilities for their dividends. This one has a fair amount of growth.
PAST TOP PICK
(A Top Pick Feb 21/07. Up 2% including dividends.)Thought there would be more of a catalyst by selling their oil/gas properties, which they did, but management paid themselves $16 million in bonuses. Now might be an interesting time to look at this.