I think the volatility in CEG may be turning down. Without the threat of a higher buy out offer by EDF, I don't think CEG will go much above $26 and with the offer by Berkshire, I am guessing it will not go too much below $24-$25.
So I may be in it from now until the sale is completed. If so, that will get me somewhere around 25% to 30%. I can live with that. I can still hope that some disconnected speculators take it outside these boundaries and give me some more opportunities to trade. I already have substantial profits from the first three rounds and round four is looking good. I wish I could find more deals like this.
Well, I finally got in for Round 4 at 24. I make that almost 20% annual return with the dividends if nothing goes wrong. Not nearly as good as you've got, but I like having some of my money (possibly) available in case the market drops.
Apart from this arbitrage I'm pretty much loaded with stocks now. But if the S&P 500 goes to 400 or something, the arbitrage might still be liquid with little penalty. Or not, and that's ok too.
Welcome back aboard the good ship Constellation. We are sailing toward the mother ship, Berkshire Hathaway and we expect good weather and smooth sailing.
I am also proud to announce that as of today I am now officially entitled to post on the ITIC message board because I bought some ITIC stock today at $32. Prior to this purchase, I always felt like I may have been infringing on the rights of authentic ITIC shareholders like you and pj. But now I have entered through the front door to claim my rightful place in the ITIC fraternity. I hope we can have a proper ceremony and that I can be re-indoctrinated with the history and principles of the honorable ITIC way.