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Dominion Resources Black Warrior Trust Message Board

  • s.eranger@sbcglobal.net s.eranger Jul 16, 2011 10:51 AM Flag

    DOM = POS

    Dominion Resources is a name I am watching closely. It may be time to sell this name for a stronger name. As the chart shows, the yearly dividends have decreased in the past three years.

    As U.S. trust holders know, U.S. trusts differ from Canadian trusts. U.S. trusts have a finite life span. Each year Dominion Resources is required to file a reserve life document estimating the present value of assets. This is in part to estimate how long the asset will live on. Dominion Resources' shelf life is anticipated at 5-7 years. Nobody can provide with 100% assurance a date when the trust will close shop. The reserve life is typically conservative in nature, and new wells are often discovered in between reserve life estimate calculations.

    Dominion is a long running trust, in existence since 1994. It has natural gas assets in Alabama. The dividends are slowing down and the stock price has tumbled gradually. In my opinion it is time to move on. In my portfolio, I attempt to sell the weak stocks and buy the stronger named trusts. In this case - at least for me - Dominion is out of gas. I likely should have exited this name one year ago.

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