CEG is currently back near the BRK buy out price. I haven't placed any new buy orders yet, but I will continue to watch it. I do have below the market buy orders to buy RDS-B, COP and BP. I have done very well trading them this year. Energy in one form or another has been my thing. The larger cap stocks have more volume and seem to be more volatile. I think it is, in part, because they are in the indexes. Stocks like ITIC are not in indexes and do not go up and down because of indexer trading.
I guess I expect it to fall apart on its own.
If it does fall apart, some of the people who got in for the 52 may not really care that much whether they get 25 or 23 or 19 on their way out. I guess I'm probably wrong, but it's free.
I sold the rest of my CEG at $28 and change and no longer have a position in our little cash cow.
May I count on you to spread a rumor that EDF has withdrawn its offer so that we can initiate round 5?
"Maybe should give up long-term value investing and just concentrate on merger arbitrage."
Seriously, I'm going to give it a try for a while. Only it would be nice to find another deal or two that I actually believe are gonna go through.
I didn't think EDF would come on so strong or so quick from the story I read yesterday. Nevertheless, I entered an order to sell 20% of my position last night at $27. When I checked this morning, it had been executed at $29.90. I subsequently sold another 20% for about $28.30, so my average sale price is abut $29.10. Now I have to figure out if I should sell the rest. I am guessing that we will not see $22 again, but we can hope.
Maybe should give up long-term value investing and just concentrate on merger arbitrage.
Jebus. I just got more than 29 for my Round 4 shares. Too bad it was a small round for me.
I put a new limit order in to commence Round 5 at 22. Just in case reality hits while I'm out at the gym.
Yeah, I just saw that. $35 sounds fair to me.
This whole market thing seems inefficient though. They should just assign one guy to sell me shares at 23 and buy them back at 26. It would save him a bundle on commissions and spreads.
The Wall Street Journal has a story that EDF is considering a new offer to buy CEG. Yahoo shows that CEG's stock traded over $26 today. I was not at the computer when it was trading at that level and I did not sell. CEG closed at $25 and change. I will be watching tomorrow in order to consider whether selling in preparation for part 5. I hope EDF offers $35.
I got my proxy on CEG yesterday and spent some time reading it last night. I was mostly interested in the process of the merger negotiations. It sounded like chaos with all of the meetings, deadlines, and the looming possibility of ratings downgrades and the threat of bankruptcy. I am still hanging on and wondering if it will go up enough to make me want to sell and try for round 5.