We evaluated 17 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. We also put each company through the ModernGraham valuation model based on Benjamin Graham’s value investing formulas in order to determine an intrinsic value for each. Here’s a summary of the ModernGraham Valuations.
Northeast Utilities does not qualify for either the Defensive Investor or the Enterprising Investor. The Defensive Investor has concerns with the low current ratio and the lack of earnings stability over the last ten years.