Look for Dominion Resources to electrify investors

Look for Dominion, a fully integrated natural gas and electric holding company, to register 2-4% revenue growth on higher utility revenue in FY2009, but also aided by the completion of the Cove Point liquid natural gas facility. Debt reduction, and planned expansion of wind generation and other power projects adds to the positive story.

Further, a high-single-digit dividend increase would not be a surprise in FY2010, and the fact the stock's chart appears to have bottomed at $27-30 makes it an inviting buy at these levels, $31-35. The First Call FY2009/FY2010 EPS estimates for D are $3.22 to $3.25.

Stock Analysis: Dominion Resources is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 50% position in Dominion Resources 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 D position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $22.

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