>>> WELCOME BACK. LET'S GET THIS ON. YOU'RE SELLING DUKE ENERGY, WHICH KEVIN HOLDS AND LOVES. WHY ARE YOU SELLING IT? CAN WE GET YOUR RESPONSE? >> FOR US, IT'S SERVED ITS PURPOSE. WE'VE GAINED ABOUT 20% ON THIS NAME SINCE BUYING IT EARLIER THIS YEAR. THEY ARE ABOUT TO ENTER A CAPEX CYCLE. THEY'RE A HIGHER MULTIPLE WITHIN THE UTILITY SPACE AND WE BOUGHT IT FOR THE HIGHER MULTIPLE EXPECTING FOR IT TO RETURN TO US AND ULTIMATELY IT'S, AGAIN, SERVED ITS PURPOSE. NOW ALSO TECHNICALLY LOOKING AT UTILITIES, THE SECTOR ITSELF IS BROADLY EXHAUSTED RIGHT NOW. I WANT TO TAKE A STEP BACK. >> KEVIN, HOW DOES THAT MAKE YOU FEEL? >> YEAH, KEVIN. >> WE HAD THIS OUT DURING THE COMMERCIAL BECAUSE I DIDN'T WANT IT TO GET UGLY. >> USE YOUR WORDS. >> WE'RE LOOKING FOR A COMPANY THAT'S GOING TO BE A BEN FISH R -- BENEFICIARY OF LOWER RATES. THIS IS A STOCK I LOVE, WE'RE UP OVER 30% THE PAST 12 MONTHS. OPERATING MARGINS WILL GET HIGHER. THE RETURN ON EQUITY IN EQUITY 9.12%. WHO WON? >> I DON'T DISAGREE, BUT I THINK THE CAP EX CYCLE, SOME OF THEIR INVESTMENTS ARE GREEN ENERGY GOING INTO AN ELECTION YEAR, SO IT SEVENS MORE RISK. >> LIZ, UTILITIES? >> I'VE USED THEM AS A FINAL TRADE A NUMBER OF TIMES THIS YEAR. WARNING, THEY ARE GETTING TO ALMOST AT OVERBOUGHT POSITION. SO THEY ARE A BIT EXTENDED. I WOULD BUY, THOUGH, BECAUSE GOING INTO FALL, AS THE DOLLAR MAY CONTINUE TO FALL WITH RATES COMING DOWN AND AS RATES COME DOWN, YOUUTILITIES LOOK NOR -- E ATTRACTIVE. >> IF WE ARE IN A CUTTING CYCLE AND DESTINED FOR A THREE HANDLE, WHICH IS POSSIBLE, TWO THINGS WOULD BE TRUE. THE NUMBER ONE THING THAT WOULD BE TRUE IS THINGS ARE GETTING WORSE, AND THAT'S WHY THEY'RE GETTING THAT LOW. THAT'S WHY THE TERMINAL LEVEL OF RATES IS IN THE 3s, WHICH FAVORS YOU TILTS. PEOPLE WILL BE BUYING THESE STOCKS DEFENSIVELY. THE TEN-YEAR TREASURY IS NO LONGER SERVING AS MUCH AS COMPETITION RELATIVE TO THE EQUITIES OF THE REGULATED UTILITIES. SO YOU WILL ALSO SEE MONEY COME INTO THE SECTOR, BECAUSE IT'S A BETTER CURRENT INCOME. UTILITY DIVIDEND VERSUS THE TREASURIES. SO IF THIS REALLY IS THAT RATE CUTTING CYCLE, AND THERE HAVE BEEN 18 OF THEM IN THE LAST 60 YEARS, IF THIS IS THE 19th, THESE STOCKS SHOULD HOLD UP. BUT LIZ MADE THIS POINT, THESE STOCKS HAVE BEEN RALLYING ALL YEAR. I'M NOT THE FIRST PERSON TO HAVE THIS BRILLIANT INSIGHT ON TELEVISION. SO I DON'T DISLIKE THE IDEA OF BEING IN UTILITIES. BY THE WAY, WHEN I LOOK AT THE BEST STOCKS IN THE MARKET, THE LIST IS LITTERED WITH UTILITIES. AND NOT JUST ENERGY. THE TELECOM NAMES LOOK A LITTLE BETTER, A LOT OF ELECTRICITY PLAYERS. SO THE SECTOR LOOKS GOOD. THE FUNDAMENTALS ARE GOOD. IT'S JUST NOT -- YOU'RE NOT BUYING THE BOTTOM. >> YOU TAKE COMM SERVICES