Nothing but Static Electricity
Long-term holders of Dominion Resources (D) have seen modest returns since the stock peaked late in 2007. Those who bought in early 2006 or near the 2008-to-2009 bottoms did much better. That's because the stock was moderately undervalued in 2006, and was especially cheap in early 2009.
At the five-year panic low, Dominion's trailing price-to-earnings ratio was only at 8.9x. Buyers then locked in a current yield of 6.45%. Conversely, at the 2007 high, the multiple was above 23x and the yield was a puny (for a utility) 2.96%....305 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.