When interest rates bottomed last month, bonds and several interest rate sensitive sectors of the stock market started to fall. #-ad_banner-#I was looking for a substantial correction in the utilities sector, and it appears to be well on its way to completing one. But some stocks in the group fell harder than others and may already be ripe for the picking. My favorite right now is Atlanta-based Southern Company (NYSE: SO). This utility company generates electricity through coal, nuclear, oil and gas, and hydro resources and distributes it in the states of… Read More
When interest rates bottomed last month, bonds and several interest rate sensitive sectors of the stock market started to fall. #-ad_banner-#I was looking for a substantial correction in the utilities sector, and it appears to be well on its way to completing one. But some stocks in the group fell harder than others and may already be ripe for the picking. My favorite right now is Atlanta-based Southern Company (NYSE: SO). This utility company generates electricity through coal, nuclear, oil and gas, and hydro resources and distributes it in the states of Alabama, Georgia, Florida and Mississippi. Since peaking at $53.16 in late January as investors sought the relative safety of utilities, the stock has fallen 14% in less than three weeks’ time. That is a very large move for a member of a normally staid sector, but it is good news for investors looking to buy now. I have been waiting for the utility sector as a whole to retrace 50% of its rather sharp rally that began in August. SO has already completed a 61.8% Fibonacci retracement… Read More