Stock to Sell #6 – Pepco Holdings (POM)
Pepco Holdings (POM) is a utility holding company that supplies electricity and natural gas through its subsidiaries, Potomac Electric, Delmarva Power and Light, and Atlantic City Electric.
It has fallen in just nine weeks from almost $23 to its bullish support line at $19. POM pays a $1.08 dividend for a 5.6% yield. But earnings are expected to fall to $1.18 per share in 2013, down from $1.24 in 2012, and unless earnings improve in 2014, the dividend could be cut. Sell POM on a close under the support line at $19 since there is little support below it.