CEG Archive

Graham-Dodd-Shiller 10 Year PE Ratio Stock Screen

Something I read last week got me interested in Professor Robert Shiller’s use of the 10 year price earnings ratio (PE) to value the stock market. It got me to thinking about whether this PE10 ratio could also be useful for valuing stocks. Shiller first wrote about the use of long-term P/E ratios to value

Fat Pitch Take on Burlington Northern Santa Fe

As a follower of Warren Buffett, I learned about Berkshire Hathaway’s (BRK-A) acquisition of Burlington Northern Santa Fe (BNI) early yesterday morning. Most value investors probably were interested in learning more about how Mr. Buffett valued BNI. What is the intrinsic value of BNI? What kind of margin of safety did Buffett’s $100 per share

Constellation Energy Shares Will Pop on New EDF Offer

Just before the market close yesterday, news broke that Electricite de France SA, also known as EDF, was once again interested in Constellation Energy Group (CEG). As you might recall, MidAmerican Energy Holdings, a Berkshire Hathaway (BRKa) subsidiary, is in the process of buying Constellation Energy for $4.7 billion or $26.50 a share.

Special Situations Real Money Portfolio – October 2008

The Special Situations Real Money Portfolio ended the month of October with a balance of $18,508.51. That’s down 3.5% from the September high of $19,181.27, but much better than performance this month of the major indexes. The year-to-date return for the portfolio is an impressive 16.04%. My total return since inception for this portfolio is

Dangers of the Greedy Limit Order

As some of you might know, I’ve been playing the Constellation Energy Group (CEG) merger arbitrage opportunity. Berkshire Hathaway’s MidAmerican has offered to buy CEG shares for $26.50. The stock has bounced down as low as $15 and as high as $28.62. I sold my original position in CEG, but last Friday I couldn’t resist

109th Festival of Stocks

Welcome to the October 6, 2008 edition of Festival of Stocks. This edition of the Festival of Stocks is coming to you live from New York City. I’m in New York to attend the Value Investing Congress, which I’ll be writing about throughout the week. If you aren’t already familiar with my blog, Fat Pitch

Special Situations Portfolio Hits New High

The Special Situations Real Money Portfolio closed out the third quarter of 2008 today at an all time high. The portfolio ended the day with a balance of $19,181.27, up $1,825.75 (+10.5%) since the end of August. The current year to date performance is a remarkable +20.26% versus a -19.29% total return for the S&P 500. If those

Fear, Uncertainty and Greed with CEG Merger Arbitrage

I must admit today’s market activity struck fear in my heart, but for a very specific reason. Constellation Energy Group’s (CEG) stock took me for a wild ride today. Thankfully, as a value investor, I knew that I had to keep my fear in check in order to profit. Let me share with you my story