I had a lot of the Feb. 12.5 calls and exercised them. Glad I did. I would have given them up for .45 cents had I sold them at expiration and they'll soon be worth 65-70 cents each on the actual shares I bought. This is a nice percentage return and this stock looks like either a take over candidate ( I have no personal knowledge to support this) or simply a stock with a lot of people wanting to own it. I'm hanging on to my shares.
You can tell from the close attention to cost cutting at CNP that something is up. Has any one heard the rumor that the regulators in Austin are leaning toward a settlement? My scuttlebut says the cost cutting programs at AEP and Intergy resuted in lower circuit performance due to the poor construction standards needed to cut costs.
I think the State of Texas Public Utility Commission recognizes there is a fine line between controlling costs to rate payers and controlling profits for a regulated monopoly.
When the hurricanes hit the Florida, Mississippi, and Louisian costs the results of super cost cutting became painfully obvious with a weak system in shambles. My hope is the regulators will recognize that to reduce rates could result in the same type of system here in Texas. I expect a favorable spin from Austin. But, thats just me. Any body have an opinion?