Northeast Utilities: Arguably, one of the safest stocks in the U.S.

In general, analysts see flat revenue for F2009, but the view from here argues that may be tad harsh on NU. Two regulator-approved rate increases have given NU the potential revenue upside investors like, provided typical energy demand growth resumes when the U.S. economy starts to recover.

Further, NU's market profile – its electric unit primarily serves customers (1.9 million in all) in land-of-steady-habits Connecticut, Western Massachusetts, and New Hampshire – is considered to be low-risk, and not as subject to boom / bust subscriber cycles characteristic of utilities in younger markets. The First Call F2009 / F2010 EPS estimates for NU are $1.83 / $2.03.

Add a 91-cent annual dividend and a stock chart that appears to have put in a double bottom near $19, and the scale is tipped in favor of a Buy.

Stock Analysis: Northeast Utilities is a low-risk stock. Consider buying a 50% position in NU now; then buy another 25% in three months, if U.S. economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your NU position in the first half of 2009. Sell / Stop Loss if you were to buy shares in this company: $13.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.