Logic Does Not Apply
January 9th, 2006 by BWV
You would think that a company that had government-sanctioned monopoly status and could mark up it’s product by 50% would be a great performing stock.
Lexington’s gas company Columbia Gas is owned by NiSource (NI), and as I recently noted they have a huge spread between the market price of natural gas and what the local gov’t allows them to charge us. Something like $14.50 vs. $9.50.. and I would assume they have similar arrangements in the rest of their locations.
You can see on the long term chart that believing in these apparently positive fundamentals hasn’t made anyone a dime for a long time. And recent action has been even worse than average.
