# FTS ....wha' happened?



## jargey3000 (Jan 25, 2011)

Have owned a little FTS forever. Dont check on it that often. For a while there it was rolling up nicely...got to $42 or so recently ... now I see it's tanked a bit -to$36 range. how come? what's the outlook for it?


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## leeder (Jan 28, 2012)

Short term market volatility.


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## londoncalling (Sep 17, 2011)

the outlook for it is that it will likely continue to pay and increase dividends long term. I do not own but if I did, I would continue to hold.


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## james4beach (Nov 15, 2012)

Utility stocks like FTS are viewed by the market as somewhat bond-like. The reason many people buy FTS (and other utility stocks) is because of the regular dividend payouts and safety of the core business; therefore in the market's eyes, they are somewhat like fixed income and FTS gets grouped with bonds.

FTS probably got sold off because of the sharp decline in bond prices. In fact take a look at these two charts, and notice how similar they are:

Fortis: http://stockcharts.com/h-sc/ui?s=FTS.TO&p=D&yr=3&mn=0&dy=0&id=p82919382959
US treasuries: http://stockcharts.com/h-sc/ui?s=AGG&p=D&yr=3&mn=0&dy=0&id=p66213159497

Remarkable similarity! The same is true for the whole utilities sector. I infer from this that when institutions sell off bonds, they simultaneously sell off utility stocks.


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## zylon (Oct 27, 2010)

The entire utilities sector has been extraordinarily weak these past few months - probably for reasons that *james4beach* lays out.

To fit the *'sector rotation'* chart better, energy and consumer staples should be a bit higher; but utilities are way out of whack - would normally be about +5% instead of -7%. When will utilities once again take their proper place in the business cycle? I dunno!










A quick study of *'sector rotation analysis'* can be found here:
http://stockcharts.com/school/doku....hool:market_analysis:sector_rotation_analysis


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## Homerhomer (Oct 18, 2010)

if you owned FTS forever you made very decent return, this is what happened. Great company, overtime it goes up little by little, and increases dividends every year.
Not a bad company for owing forever and not checking very often.


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## supperfly17 (Apr 18, 2012)

zylon said:


> The entire utilities sector has been extraordinarily weak these past few months - probably for reasons that *james4beach* lays out.
> 
> To fit the *'sector rotation'* chart better, energy and consumer staples should be a bit higher; but utilities are way out of whack - would normally be about +5% instead of -7%. When will utilities once again take their proper place in the business cycle? I dunno!
> 
> ...


Thanks for the analysis. Really well done.


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