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Value, dividend growth investing, large-cap
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It is now time to recommend that Northwestern Natural Gas (NWN) be sold at the market. The stock has performed moderately since the research recommendation was issued on October 3, 2009 (it is highly recommended that anyone who bought the stock based on my research should re-read the posting). Unfortunately, just as it was not possible to buy my AquaAmerica (WTR) recommendation, it was the same for my recommendation of NWN; the price only went up from the date recommended.
NWN's stock price has gone nowhere but up since the recommendation. However, in the pursuit of "seeking fair profits," the returns that this stock have provided within the last 80 days say that it is necessary to consider alternative opportunities.
NWN was recommended when it was trading at $40.94. As of December 21, 2009, NWN was quoted at $45.25. This equals a return of 10.53%. Selling this stock now generates a return of 2.6x greater than the amount of the dividend yield. Additionally, the 10.53% gain exceeds the return on a 30-year treasury purchased on October 2, 2009 by 2.63x.
Those not interested in following through with my sell recommendation can feel comfortable knowing that NWN is a great long-term holding with a 10.53% cushion since our research recommendation of October 3, 2009.
Disclosure: No positions
Source: Sell Northwestern Natural Gas at the Market