Pepco's Futility

For the typical utility investor, Pepco Holdings (POM) represents far too much risk, even though most of its assets are regulated. Only speculators should own this company.

The company's horrible second-quarter results begin to tell the story. On the top line, total revenues were a surprise, totaling $1.18 billion, down 16.5% from $1.41 billion in the year-ago period. Earnings were $0.25 per share, much lower than the year-ago figure of $0.43. Earnings per share, as per GAAP, were $0.27, down 35.7% from in the year-ago period. Incredibly, the company reiterated its 2012 earnings-per-share outlook in the range of $1.15 to $1.30....625 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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