BUY NEE @ $268.10

Buying NEE @ $268.10

2% position

The next leg of this DUK/NEE merger news that was probably just a trial balloon - after shorting DUK up 6% on the day - is to buy NEE down 5% on the day.

It seems the deal isn't real. Why is NEE down 5% on a non-deal? Because they might do a deal? Might?

Even if they do a deal, it will be accretive to value and earnings. It will be a regulated-focused deal with various levers to pull to extract extra gains for shareholders. It will de-risk the business. It will allow them to borrow at today's obscenely low rates for a productive asset.

I'm not a fan of big, levered mergers in utilities...but buying a stock that's being punished for NOT doing a deal? Easy money.