NRG Energy (NYSE:NRG): the market is discounting a value accretive, debt funded transformation as if the leverage were a solvency problem rather than a scheduled deleveraging.
The defining event is the LS Power acquisition, doubling generation capacity to 25.8 GW. A material recent announcement was the first large "bring your own power" data center deal. This is a decent business at a genuinely cheap price, with the debate resting entirely on whether it delevers on schedule.
The fundamentals support the technical signal. It's cash generative, cheap on cash flow, with a self correcting leverage story.
Worth looking into.
