FPL Group ( FPL) isn't your basic utilities company; it has all kinds of action going on. FPL is a holding company for Florida Power & Light, where it provides services to 4.3 million customers. Besides the sale of electric energy, FPL Group provides fiber-optic services to telecommunications companies. I like the diversified group of "earning centers" under one roof, for example: natural gas, wind and nuclear resources. The stock looks good for a couple points, minimum. With a forward P/E at 12.47 and free cash flow coming in over $1.10 billion, this is a low risk-high reward play, consistent with what has been making us money week after week. In keeping with our deep-in-the-money strategy, I recommend buying the September $35 calls for $5.80 or better. FPL has taken a hit from the acquisition of Constellation Energy ( CEG), which is to be expected, but now should head north. Bottom line: Once again, we are getting involved with a quality company, selling at a discount. We will make money with FPL. Stick with the game plan, stay disciplined, stay focused, and you will continue to make money! On a related note, everybody who follows my strategy should have already deposited a profit with last week's play , as Intel ( INTC) rocketed up more than 60 cents the very next day. Remember -- this is not a buy-and-hold strategy. In baseball, my goal was to "get on base" with singles and doubles (and walks) rather than swinging for the fences in every at bat. The same philosophy applies here.
The Game of Life
The penultimate weekend in college basketball has been completed and the Final Four is set. Favorites have been eliminated, while the most storied program in NCAA history, the UCLA Bruins, is back on center stage. UCLA has produced a bevy of star players, including Lew Alcindor (Kareem Abdul Jabbar) and Bill Walton.