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Scouring the globe for the investments with compelling risk/reward scenarios. Depending on market conditions these include dividend stocks, REIT's, MLP's, International Small Caps, special situation's, metals, bonds, etc. I focus on long term fundamentals while capitalizing on short term... More
  • Brazilian vs American Utilities 0 comments
    Sep 7, 2010 7:54 PM | about stocks: D, CPL
    Dominion (NYSE:D) is an American Utility company located in Virginia, investors are attracted to the stock for its 4.20% yield. D trades at 13.57x 2011 earnings. Even though D has held up well downturns, yet also performed nicely in bull environments. I would urge D holders to consider reallocating capital overseas into an alternative. CPFL Energia (NYSE:CPL) a Brazilian Utility seems much more attractively priced. CPL has a dividend yield 220 basis points higher at 6.40% and also has much better capital appreciation potential. This is because unlike in the U.S. where electricity demand is relatively stagnant, in Brazil with around 7% GDP growth for 2010 electricity demand is increasing. So CPL has better potential capital appreciation, 220 basis point better yield, and is 8% cheaper with 12.45x 2011 earnings.

    Disclosure: Long CPL
    Stocks: D, CPL
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