does anyone have any idea why DNP has been moving up? I dont think it has to do with the general market as i have other similar stocks which are just treading water or moving a little down.
oilmetinman: Since the Feds have hiked .5 and DNP price has jumped to 9+, what might happen if the Fed hikes again, say .25 in June? Could flight to safety continue to pressure DNP price upward?
Because the net asset value is going down with
the lower telecom prices. Higher interest rates mean
lower utility prices also.
Note the decline in
the last few days of 1/4 +
which is a greater loss than the dividends. If DNP does
decline to $8 you loose more than you make. The FED is
still in a hike mode more rates hikes to come. When the
fed stops then it is time to buy. Of course if you
want safety then buy now. A flight to saftey could
push up the price. In the long term I believe DNP is a
good core holding for the retired person looking for
then why was it trading near $8 1/4 few months
ago? The Net asset value is decreasing. Higher
interest rates mean lower utility stock prices. Estimates
are even lower for the net asset value for next
quarter due to the decline of the telcom sector. DNP is
headed to $8.00 again.
The utility average is up almost 10% in recent
days. People are putting money in "safe havens" until
the bloodbath is over in the tech sector. DNP is a
great place to park some money. Utilities are a
relatively safe investment especially compared to the rest
of the market.