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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.

II Home Fool
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