NEW YORK (TheStreet) -- Shares of Dynergy (DYN) were gaining 8.3% to $30.63 with heavy trading volume Monday after the energy company received final approval to acquire Duke Energy's (DUK) - Get Report Midwest commercial and retail business and Energy Capital Partners asset portfolios.

The Federal Energy Regulatory Commission issued an order on Monday approving the Dynergy's acquisition of ownership interests in certain Ohio, Illinois, and Pennsylvania commercial generation assets and retail businesses.

Dynergy said it expects to close its acquisition of EquiPower and Brayton Point Holdings from Energy Capital Partners on April 1. The company expects to close tthe acquisition of Duke Energy assets on April 2.

Following the acquisitions Dynergy will own and operate about 26,000 MW of fuel-diverse power generating facilities that will provide electricity to customers through the Homefield Energy and Dynergy Energy Services retail brands.

About 2.4 million shares of Dynergy were traded by 10:34 a.m. Monday, above the average trading volume of 1.6 million shares.

TheStreet Ratings team rates DYNEGY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate DYNEGY INC (DYN) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, poor profit margins and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Independent Power Producers & Energy Traders industry. The net income has decreased by 14.3% when compared to the same quarter one year ago, dropping from -$91.00 million to -$104.00 million.
• Net operating cash flow has significantly decreased to -$113.00 million or 362.79% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
• The gross profit margin for DYNEGY INC is rather low; currently it is at 20.87%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, DYN's net profit margin of -17.36% significantly underperformed when compared to the industry average.
• The debt-to-equity ratio is very high at 2.35 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 3.31, which shows the ability to cover short-term cash needs.
• Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Independent Power Producers & Energy Traders industry and the overall market, DYNEGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
• You can view the full analysis from the report here: DYN Ratings Report