Thursday, September 18, 2008

Utilities rebound on Constellation buyout news (BRK.A: CEG)

A reader asks why we put "Bingo!" in our headline on the MidAm/CEG transaction. No, we didn't own CEG (you'd have had to be pretty nimble to own it so you could profit from the $26.50 price, it only traded below that for four hours in the last five years). Rather, the bingo was for the confirmation of the industry sector. Secondly, the group got a little pop on the news.
From the AP via Yahoo Finance:

...Meanwhile, shares of Dynegy Inc., which supplies power mostly in the Midwest, Northeast and West Coast, advanced 35 cents, or 10.9 percent, to $3.55.

Shares of New Orleans-based Entergy Corp., which is still recovering from Hurricane Ike, gained $2.11, or 2.4 percent, to $89.40.

Shares of New York-based Consolidated Edison Inc. added 99 cents, or 2.3 percent, to $44.86, and shares of Chicago-based Exelon Corp. gained $2.24, or 3.6 percent, to $64.27....