Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Murph and Doogy--

DUK is buying PNY at a price significantly above James' valuation estimate of $36.50.

I think DUK is desparate to acquire natural gas and related distribution assets. Coal has been demonized (and perhaps rightly so since efforts to create "clean coal" have failed) and can't compete with natural gas. Similarly, nuclear power cannot compete with the price of natural gas. And natural gas-burning power plants are cheaper to build than nuclear power plants.

So, DUK is going all in with natural gas. But you're right, Murph, DUK is overpaying for PNY. That's a shame for us DUK shareholders, but great for PNY shareholders.

David
II Home Fool
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.