High Valuation Signal in Utility

ITC Holdings Corp. is in the electricity transmission business. They operate transmission lines in the mid-western US that connect generating stations to local distribution facilities. The Company’s Regulated Operating Subsidiaries earn revenues through tariff rates charged for the use of their electric transmission systems by its customers, which include investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers.

[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'ITC'" symbolprices="101" div_align="right"]

• We highlighted a low valuation at $91.00 in November 2013. Given the very quick rise in the share price and the headwinds caused by rising interest rates, we believe that a high valuation has been reached. We recommend taking the profit at current prices.

• New Purple Chips valuation range: low at $91.00, high at $101.00

• HIGH VALUATION IN ITC HOLDINGS AT $USD 101.00 (ITC, $101.10) FULL POSITION

• Total return from this trade including dividends +11.9%