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Timothy Smith

07/19/12 9:28 PM

#23 RE: acunuttall #22

Williams Co.

Williams Co.
Ticker: WMB
Price Target: $37
Location: Tulsa, OK
Specialty: Infrastructure
Comments: "WMB is a principal beneficiary of long-term demand in natural gas and liquids infrastructure and gas processing."
Source: Morgan Stanley


Read more: http://www.businessinsider.com/morgan-stanleys-natural-gas-playbook-2012-7?op=1#ixzz217bbXiEt

Timothy Smith

10/16/12 12:47 PM

#24 RE: acunuttall #22

Williams is trading 5% below its 52-week high and has 1% upside based on the consensus mean target price of $36.08 for the company. Williams was trading Monday for $35.85, up over 2% for the day.

Fundamentally, Williams has some positives but looks richly valued. Williams is trading nearly 8 times book value. Williams has a net profit margin of 12.64% and a forward P/E of 25.61. The stock trades with a PEG ratio of over 2 which is considered overvalued.

Technically, the stock has been in a well-defined uptrend and has pulled back to the 20-day sma recently. The stock is trading 7% above the 50-day sma. The technical signs are bullish, but I would avoid this stock based on the fundamentals.

This stock has become overvalued at current levels. I would take profits at this time or avoid the stock if not in it yet.