As the markets have recovered somewhat from the lows, TRP is languishing.
What news if any is holding this stock down?
Regards, Nizar
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When you look at TransCanada Corp. and its performance against the market you have to realize that the recovery from the lows was driven by a resurgence in investor appetite for risk which had them searching richer fare than the lean and heart healthy utility stocks.
Utility stocks are a safe haven that pay a dividend and reward investors that are looking for steady earnings and steady dividends.
The chart for TRP clearly shows that even this stalwart pipeline giant was not immune to the sell off that started in September of 2008. But there has been a break above the downtrend and a recovery from the March lows.
The stock appears to be range bound with support at $29 and resistance at $32 and having cycled through the range twice since March. The other thing to consider with TRP is that at its closing price on May 26 its dividend yield was 4.8 per cent. Not a bad rent to collect while waiting for a return to better times.
The only thing holding TransCanada Corp back is that investors are more interested in dancing with stocks that gave a higher beta leaving the low beta, dividend paying beauties on the sidelines.
Happy Capitalism!
Lou Schizas
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Lou Schizas