The stock of electric power/natural gas play Dominion Resources (D), first discussed on May 8, 2009, at a price of $31.87, appears to be headed toward higher ground, having pushed above 52-week resistance at $45, and I still like the stock at this juncture.

Look for Dominion to post a 2011 revenue increase of 1% to 3%, boosted by modestly higher electric utilities revenue. Meanwhile, in 2011, as was the case in 2010, sub-par natural gas prices will likely hurt Dominion's gas distribution business, but the view from here argues prices should continue to firm in 2011. An impressive $1.97 annual dividend -- good for a 4.4% yield at the current share price -- provides some downside protection for investors.

Continue reading Dominion Resources Rises to 52-Week High

Dominion Resources Rises to 52-Week High originally appeared on BloggingStocks on Tue, 01 Mar 2011 15:00:00 EST. Please see our terms for use of feeds.

The shares of electric power/natural gas play Dominion Resources (D), first discussed on May 8, 2009 at a price of $31.87, pulled-back this fall after testing $45.

Even so, investors who can tolerate moderate risk should view that retreat as an opportunity to scoop-up shares: particularly in uncertain economic times, rare is the day you should lose faith in a utility play.

Continue reading Has Dominion's Pull-Back Created an Opportunity?

Has Dominion's Pull-Back Created an Opportunity? originally appeared on BloggingStocks on Mon, 13 Dec 2010 16:30:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• Red Hat (RHT) and American Public (APEI) to outperform from sector perform at RBC Capital.
• KBR (KBR) and Foster Wheeler (FWLT) to buy from neutral at Goldman.
• Bio-Rad (BIO) to outperform from market perform at Leerink.
• Oceaneering (OII) to outperform from neutral at Credit Suisse.
• ASM International (ASMI) and Avid Technology (AVID) to overweight from neutral at JPMorgan.
• Dominion Resources (D) to equal weight from underweight at Morgan Stanley.
• Nationwide Health Properties (NHP) to buy from hold at Jefferies.
• Vivus (VVUS) to buy from underperform at BofA/Merrill.
• Intersil (ISIL) to buy from hold at Canaccord.

Continue reading Analyst Calls: ALTR, CBOE, D, ETR, JCI, KBR, MMM, NFLX, OII, RHT, WY ...

Analyst Calls: ALTR, CBOE, D, ETR, JCI, KBR, MMM, NFLX, OII, RHT, WY ... originally appeared on BloggingStocks on Wed, 08 Dec 2010 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Dominion's Uptrend Continues

Dominion's Uptrend Continues originally appeared on BloggingStocks on Wed, 08 Sep 2010 14:20:00 EST. Please see our terms for use of feeds.

Continue reading Dominion Is in an Uptrend

Dominion Is in an Uptrend originally appeared on BloggingStocks on Thu, 06 May 2010 14:15:00 EST. Please see our terms for use of feeds.

Last week, the fourth largest U.S. coal producer, CONSOL Energy (CNX), agreed to pay $3.48 billion for the Appalachian natural gas properties of Dominion Resources (D). It was a major move to diversify its energy platform, picking up 1.46 million oil and gas acres and 9,000 producing wells. In all, CONSOL is expected to boost its natural reserves to about 3 trillion cubic feet and the potential reserve base will be about 41 trillion cubic feet.

However, the deal is not cheap and will require some financial maneuverings. For example, Monday CONSOL agreed to purchase its remaining 17% stake in CNX Gas (CXG) for $965 million.

Continue reading Consol Energy Scoops Up CNX Gas for $965 Million

Consol Energy Scoops Up CNX Gas for $965 Million originally appeared on BloggingStocks on Mon, 22 Mar 2010 11:50:00 EST. Please see our terms for use of feeds.

Dominion Resources (D) has been one of my electric power generation favorites for awhile, first recommended on May 8, 2009, at a price of $31.87, and I still like the stock. Here's why:

Dominion, a fully integrated natural gas and electric holding company, is on-track to register 4% to 7% revenue growth on higher utility revenue in F2010, 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. And Dominion's annual dividend of $1.83 is an eye-opener.

Continue reading Dominion Remains Delightful

Dominion Remains Delightful originally appeared on BloggingStocks on Thu, 11 Feb 2010 13:10:00 EST. Please see our terms for use of feeds.

Rare is the day you should sell an electric power generation play, which is why I'm reiterating my buy rating for Dominion Resources (D), first recommended on May 8, 2009, at a price of $31.87. If you bought Dominion in May, you're up about 16%.

Dominion, a fully integrated natural gas and electric holding company, is on-track to register 2% to 4% revenue growth on higher utility revenue in F2009, but also aided by the completion of the Cove Point liquid natural gas facility. Debt reduction, as well as planned expansion of wind generation and other power projects, adds to the positive story. Dominion's annual dividend is $1.75.

Continue reading Dominion Resources: Back up the truck

Dominion Resources: Back up the truck originally appeared on BloggingStocks on Sun, 22 Nov 2009 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Look for Dominion Resources to electrify investors

Look for Dominion Resources to electrify investors originally appeared on BloggingStocks on Fri, 11 Sep 2009 16:20:00 EST. Please see our terms for use of feeds.

Continue reading Dominion has deftly honed its resources

Dominion has deftly honed its resources originally appeared on BloggingStocks on Fri, 08 May 2009 17:20:00 EST. Please see our terms for use of feeds.

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

In addition to old standbys like consumer staples, utility stocks are a proven favorite during times when your portfolio needs a defensive touch. Among utilities, Virginia-based Dominion Resources (NYSE: D) stands out for its solid price action, its exposure to natural gas, and its heavy potential for future upgrades.

While natural gas might not seem terribly thrilling, many analysts expect it to be a hot commodity in the coming years. It's a plentiful resource in North America, and no less an energy tycoon than T. Boone Pickens is banking on a natural-gas boom. With 1.1 trillion cubic feet of oil and natural gas reserves, Dominion looks poised to capitalize on a shift toward this source of energy.

The utility firm already seems to be thriving, in fact. In its October 30 earnings report, the company exceeded analysts' profit expectations by 4 cents per share, and offered upbeat guidance for fiscal 2008 and 2009.

For value investors, though, the third-quarter report contained even more good news. Thomas Farrell II, Dominion's president, chairman, and CEO, stated, "Given its confidence in the strength of our company's earnings and business model, the board of directors recently declared our fourth-quarter dividend and reconfirmed our dividend policy to sustain increases in 2009 and 2010 that will allow us to reach our targeted 2010 payout ratio of 55%."

Continue reading Cheap Stocks: Dominion Resources

Cheap Stocks: Dominion Resources originally appeared on BloggingStocks on Mon, 08 Dec 2008 15:10:00 EST. Please see our terms for use of feeds.

While other earnings may have disappointed last week, the news was good for oil giant ConocoPhilips (NYSE: COP). In what some took as a good sign for big oil, the Houston-based company reported that third quarter net income surged 41% year over year to $3.39 per share, and that revenue also surged 52% to $70 billion. We'll see whether the good news extends to other petroleum giants scheduled to report quarterly results this week.

Analysts surveyed by Thomson Financial are looking for BP (NYSE: BP) profits to have grown 43.2% in the most recent quarter to $2.34 per share on revenue of $109.7 billion, and Chevron Corp. (NYSE: CVX) to post earnings up 39.4% to $3.25 per share on revenue of $86.8 billion. Marathon Oil Corp. (NYSE: MRO), ExxonMobil Corp. (NYSE: XOM), and Royal Dutch Shell (NYSE: RDS.A) likewise are expected to report higher net income of $2.33 per share (sales of $23.4 billion), $2.40 per share (sales of $131.4 billion), and $2.65 per share, respectively. Even Valero Energy Corp. (NYSE: VLO) is expected to post earnings slightly higher to $1.46 per share (sales of $36.4 billion), despite the effects of Hurricane Ike. Among these companies, only BP and Valero beat earnings expectations in the previous quarter. Not surprisingly, analysts on average recommend buying all except Valero, and shares of all of these companies have recently hit 52-week lows.

Continue reading The week in preview: Focus on oil and energy

The week in preview: Focus on oil and energy originally appeared on BloggingStocks on Sun, 26 Oct 2008 12:30:00 EST. Please see our terms for use of feeds.

The Washington Post reports that pension fund managers representing $1 trillion have petitioned the Securities and Exchange Commission (SEC) to required public companies to disclose the impact of global warming on their business prospects. If the SEC agrees, the change could threaten investors in utility stocks -- which are among the biggest private sources of carbon dioxide emissions that cause global warming.

Here's a list of utility stocks which could be most affected:

• American Electric Power (NYSE: AEP). AEP produced 145.4 million tons of carbon dioxide in 2006. In Europe, where legislation already limits carbon dioxide emissions, allowances for a ton of carbon dioxide sell or 20.5 euros, or about $28.50. So if its 2006 carbon dioxide had been emitted in Europe, AEP would have had to pay over $4 billion.
• Dominion Resources (NYSE: D)
• Dynegy (NYSE: DYN)
• Xcel Energy (NYSE: XEL)

Coal producer, Peabody Energy Corp. (NYSE: BTU) could also be among those companies affected.

Continue reading Will SEC make utilities like American Electric Power (AEP) disclose climate risks?

Will SEC make utilities like American Electric Power (AEP) disclose climate risks? originally appeared on BloggingStocks on Tue, 18 Sep 2007 11:35:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Dell Inc (NASDAQ: DELL) was upgraded to Outperform from Neutral at Credit Suisse, with a $28 target. The firm expects Dell to augment its existing technology with targeted acquisitions, reduce its cost structure and tweak its distribution philosophy.

• American Technology upgraded Taiwan Semiconductor Manufacturing Co ADS (NYSE: TSM) to Neutral From Sell.

• Level 3 Communications Inc (NASDAQ: LVLT) was upgraded to Market Perform from Sell at Janco; the firm doesn't recommend being short on the stock which is going into earnings on February 9th.

• Dominion Resources Inc (NYSE: D) was upgraded to Hold from Sell, with an $81 target, at Deutsche Bank.

Analyst upgrades 2-05-07: Credit Suisse has big expectations for Dell originally appeared on BloggingStocks on Mon, 05 Feb 2007 10:48:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Piper Jaffray upgraded Amazon.com Inc (NASDAQ: AMZN) to Market Perform from Underperform, with a $36 target, to reflect the company's strong revenue growth; however, they still consider up-side limited from here.

• Bank of America upgraded Microsoft Corp (NASDAQ: MSFT) to Buy from Neutral, with a $35 target, as they believe the company's growth outlook is solid and that 2008 consensus could be conservative.

• Following the company's solid Q3 report, Electronic Arts Inc (NASDAQ: ERTS) was upgraded by Deutsche Bank to Hold from Sell, with a $50 target, and to Buy from Hold at Needham, with a $60 target.

• Citigroup upgraded Raytheon Co (NYSE: RTN) to Buy from Neutral, with a $60 target, to reflect the company's above-industry growth and low valuation.

• Wachovia upgraded Dominion Resources Inc (NYSE: D) from Market Perform to Outperform. The firm said their estimates have been too conservative.

Analyst upgrades 2-02-07: Piper Jaffray likes Amazon.com originally appeared on BloggingStocks on Fri, 02 Feb 2007 10:48:00 EST. Please see our terms for use of feeds.

Dominion Resources Inc. (NYSE: D) is making some big changes. The company wants to unload about 83% of its oil and gas production business. The reserves are in areas such as New Mexico, the Permian Basin in Texas, the Gulf of Mexico and Canada.

Such a deal will carry a heavy price -- the estimate is $15 billion or so. But of course there is a ton of cash in the private equity sector and it looks like Dominion will have no trouble finding buyers.

According to the Wall Street Journal, one group includes firms like Madison Dearborn Partners, Warburg Pincus, First Reserve and Carlyle Group. And it looks like Goldman Sachs (NYSE: GS0) and Morgan Stanley (NYSE: MS) will also join the party.

Aren't these companies arch enemies?

Yes they are. But big-time deals require teamwork. Besides, Dominion's assets are top-notch and should be a strong source of ongoing cash flow generation as well as tax benefits.

And the interest in Dominion is another sign that private equity thinks that over the new few years energy prices should increase.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Dominion Resources attracts private equity originally appeared on BloggingStocks on Wed, 24 Jan 2007 12:46:00 EST. Please see our terms for use of feeds.