Comments on: Fear, Uncertainty and Greed with CEG Merger Arbitrage

By: Maintain Your Health During the Financial Crisis

Maintain Your Health During the Financial Crisis — Thu, 30 Oct 2008 04:10:15 +0000

[...] Investing Congress earlier this month. I’ve made a significant change in strategy in the Special Situations Real Money Portfolio to take advantage of opportunities abandoned by hedge funds. I’ve also been staying up late [...]

By: 109th Festival of Stocks

109th Festival of Stocks — Mon, 06 Oct 2008 11:25:16 +0000

[...] Fear, Uncertainty and Greed with CEG Merger Arbitrage posted at Fat Pitch Financials. My look back at the wild ride that Constellation Energy Group provided as fear, uncertainty, and rumors created a profitable merger arbitrage opportunity. Stocks: CEG, BRKa [...]

By: Constellation Energy Group Merger Arbitrage Profits

Constellation Energy Group Merger Arbitrage Profits — Fri, 03 Oct 2008 04:36:48 +0000

[...] S&P 500 was down 4% today, but my merger arbitrage position in Constellation Energy Group (CEG) was up nicely. In fact, CEG shares climbed all the way up to the MidAmerican Energy [...]

By: George

George — Fri, 03 Oct 2008 03:31:43 +0000

I closed out my position in CEG today. I actually placed a limit order to sell at $26.40 yesterday. The reason I placed that limit order was because I was scheduled to be in an all day meeting today, which would prevent me from monitoring CEG. I wanted to make sure my position was sold if Mr. Market went crazy again and shot the price of CEG up to the buyout price. I’m not very confident about the EDF offer for $35, so I’m happy with my decision to sell CEG today. In addition, I want to be ready to pounce on another merger arbitrage opportunity tomorrow if the bailout is not passed by the House.

By: Dividend Growth Investor

Dividend Growth Investor — Thu, 02 Oct 2008 19:00:59 +0000

Pretty good news today regarding CEG. Do you close part of your position on the strength or do you hold for $35?

By: Jay Walker

Jay Walker — Wed, 01 Oct 2008 04:42:19 +0000

I think you should be very clear to your readers that this buyout is still in the “due diligence” at this point, and could fall apart.

Misleading, potentially, by omission.

By: George

George — Wed, 01 Oct 2008 00:17:48 +0000

@value: I’m not banking on the EDF deal. The regulatory approval for such a deal would take too long and add lots of risk in this financial market chaos.

@Nick: You missed one hell of a roller coaster watching CEG yesterday.

By: Nick

Nick — Tue, 30 Sep 2008 20:19:37 +0000

George,

Great job. I wish I’d been watching this play out!

By: value

value — Tue, 30 Sep 2008 13:30:00 +0000

Do you have any thoughts as to whether CEG will entertain the EDF deal for $35/share despite agreeing with MidAmerican?

By: George

George — Tue, 30 Sep 2008 13:29:53 +0000

The BUD arbitrage play looks pretty good. It’s on my list of what to buy as cash frees up in my portfolio.

By: Dividend Growth Investor

Dividend Growth Investor — Tue, 30 Sep 2008 13:26:16 +0000

Wow good job on keeping your emotions in tact. I never really trust yahoo/google/msn message boards for information however. Anyone could register a domain name and post anything they want in a message board.

Speaking of arbitrage, what do you think about BUD trading at a 10% discount to its tender price?