BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Constellation Energy (CEG) gets sweeter offer from French]]>http://www.bloggingstocks.com/2008/12/03/constellation-energy-ceg-gets-sweeter-offer-from-french/http://www.bloggingstocks.com/2008/12/03/constellation-energy-ceg-gets-sweeter-offer-from-french/http://www.bloggingstocks.com/2008/12/03/constellation-energy-ceg-gets-sweeter-offer-from-french/#commentsFiled under: , , , , ,

CEG logoConstellation Energy Group (NYSE: CEG - option chain) shares have moved higher today after French power company EDF offered a $6.5 billion bid for half of CEG's nuclear business and other assets. The offer challenges an earlier bid from MidAmerican, a unit of Berkshire Hathaway (NYSE: BRK.A).

If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on CEG.

CEG opened this morning at $30.00. So far today the stock has hit a low of $27.37 and a high of $30.17. As of 12:35, CEG is trading at $28.04, up $2.89 (11.5%). The chart for CEG looks neutral and S&P gives CEG a neutral 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $22.50 range.

Continue reading Constellation Energy (CEG) gets sweeter offer from French

Constellation Energy (CEG) gets sweeter offer from French originally appeared on BloggingStocks on Wed, 03 Dec 2008 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawayBerkshireHathawaybuyoutCEGconstellation energyConstellationEnergydealinthenewsinvestors observerInvestorsObserveroptionsWed, 03 Dec 2008 13:00:00 EST<![CDATA[Cramer on BloggingStocks: Buffett knows the score on Goldman ]]>http://www.bloggingstocks.com/2008/09/24/cramer-on-bloggingstocks-buffett-knows-the-score-on-goldman/http://www.bloggingstocks.com/2008/09/24/cramer-on-bloggingstocks-buffett-knows-the-score-on-goldman/http://www.bloggingstocks.com/2008/09/24/cramer-on-bloggingstocks-buffett-knows-the-score-on-goldman/#commentsFiled under: , , , ,

TheStreet.com's Jim Cramer says he at least recognizes value when he sees it.

Warren Buffett is not an idiot. He has kept his powder dry through all of this madness and suddenly, within one week, he has opened his coffers and picked up not one, but two multi-billion-dollar steals, Constellation Energy (NYSE: CEG) (Cramer's Take) and Goldman Sachs (NYSE: GS) (Cramer's Take).

These investments are the first sign that someone, some grown-up, is coming in from the sidelines, not because he has been talked into something that he doesn't want to do or understand -- which has been the case in all of the other bank financings -- but because he sees a delicious rate of return that will be hard to take away now that he has put his balance sheet to work, one of the last with any firepower to make a difference.

First, Constellation. Here's a perfectly good utility that, because of its business model, needs capital to work. It made several miscues that brought it to its knees -- a business that is a regular, good generator of income gone bad because of financing. I have no idea how low it would have gone, but as long as it was intact, it was worth a lot more than it was selling for to someone who has financing, and that's what Buffett has in spades. He stole the company.

Continue reading Cramer on BloggingStocks: Buffett knows the score on Goldman

Cramer on BloggingStocks: Buffett knows the score on Goldman originally appeared on BloggingStocks on Wed, 24 Sep 2008 08:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>berkshire hathawayBerkshireHathawaybrk.acegconstellation energyConstellationEnergyfeaturedgoldman sachsGoldmanSachsgsjim cramerJimCramerwarren buffettWarrenBuffettwfcWed, 24 Sep 2008 08:45:00 EST<![CDATA[Buffett's cheapo deal for Constellation Energy]]>http://www.bloggingstocks.com/2008/09/22/buffett-s-cheapo-deal-for-constellation-energy/http://www.bloggingstocks.com/2008/09/22/buffett-s-cheapo-deal-for-constellation-energy/http://www.bloggingstocks.com/2008/09/22/buffett-s-cheapo-deal-for-constellation-energy/#commentsFiled under: ,

In the current market, it's certainly nice to be Warren Buffett. Many companies are looking for cash infusions, and of course, are making calls to the dealmaking guru.

So, recently Buffett reached a deal to purchase Constellation Energy Group (NYSE: CEG), which operates a variety of energy assets such as nuclear power plants, for $4.7 billion. To do this deal, Buffett used his MidAmerican Energy Holdings Co. vehicle, of which Berkshire Hathaway (NYSE: BRK.A) owns 80.5% of the common stock.

As should be no surprise, Buffett wasn't the only player interested in the deal. In fact, KKR, TPG and Electricité de France (EdF) made a bid for Constellation as well and were actually willing to offer 32% more.

But Constellation rejected the bid.

Not long ago this would have been an attractive bid, but in light of the credit crunch and botched deals, private equity firms have gotten a black eye.

Regulatory approval is also problematic, especially with the involvement of French based EdF. Although, Buffett has a track record as a long-term investor, which should allay fears.

Besides, Buffett quickly invested $1 billion into Constellation so as to stabilize things as the recent financial turmoil wreaked havoc on the company. In other words, he has a lot of leverage in this deal - even if rivals put together much higher bids.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He is also the founder of BizEquity, a valuation website

Buffett's cheapo deal for Constellation Energy originally appeared on BloggingStocks on Mon, 22 Sep 2008 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>brk.acegConstellation EnergyConstellationEnergyinthenewswarren buffettWarrenBuffettMon, 22 Sep 2008 16:30:00 EST<![CDATA[Constellation Energy (CEG) gets positive Barron's report]]>http://www.bloggingstocks.com/2008/03/03/constellation-energy-ceg-gets-positive-barrons-report/http://www.bloggingstocks.com/2008/03/03/constellation-energy-ceg-gets-positive-barrons-report/http://www.bloggingstocks.com/2008/03/03/constellation-energy-ceg-gets-positive-barrons-report/#commentsFiled under: , , ,

CEG logoConstellation Energy Group, Inc. (NYSE: CEG) shares are have been rallying today following a report in this week's Barron's that indicated a positive outlook on the stock. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on CEG.

After hitting a one-year low of $76.40 in March, the stock has risen most of the past year to hit a one-year high of $107.97 in January. CEG opened this morning at $88.42. So far today the stock has hit a low of $88.42 and a high of $91.08. As of 1:00, CEG is trading at $90.42, up $2.07 (2.3%). The chart for CEG looks bearish and steady while S&P gives CEG a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an April bull-put credit spread below the $80 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make a 9.9% return in just one and a half months as long as CEG is above $80 at April expiration. Constellation would have to fall by more than 11% before we would start to lose money.

CEG hasn't been below $80 since August and has shown support around $86 recently. This trade could be risky if the economic slowdown continues, but even if that happens, this position could be protected by the support the stock might find just below $80, which is where CEG bottomed out in the late summer.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in CEG.

Constellation Energy (CEG) gets positive Barron's report originally appeared on BloggingStocks on Mon, 03 Mar 2008 14:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Barron'sCEGConstellation EnergyConstellationEnergyinthenewsoptionsMon, 03 Mar 2008 14:44:00 EST<![CDATA[Holiday earnings reports: Constellation Energy, Natco, Trico Marine and others]]>http://www.bloggingstocks.com/2008/02/17/holiday-earnings-reports/http://www.bloggingstocks.com/2008/02/17/holiday-earnings-reports/http://www.bloggingstocks.com/2008/02/17/holiday-earnings-reports/#commentsFiled under:

Even though tomorrow is a holiday in the U.S., there are a handful of companies planning to report quarterly earnings nonetheless. Perhaps some may be trying to keep a low profile; others may simply not be concerned with the American holiday schedule. Regardless, here's a quick peek at some of those companies, with the consensus earnings per share estimate of analysts surveyed by Thomson Financial compared to the previous quarter and year-ago quarter, the share price at the close on Friday (with charts behind the links), and consensus recommedations.

UPDATED: Constellation reported .13 EPS; Flagstone reported .60 EPS; Natco reported .66 EPS; PharMerica reported .09 EPS; Stewart reported -1.74 EPS; and Trico Marine reported 2.08 EPS.

Holiday earnings reports: Constellation Energy, Natco, Trico Marine and others originally appeared on BloggingStocks on Sun, 17 Feb 2008 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CEPConstellation Energyearningsearnings reportsFlagstone ReinsuranceFSRNatcoNTGPharMericaPMCSTCStewart Information ServicesTrico MarineTRMASun, 17 Feb 2008 16:40:00 EST<![CDATA[Analyst initiations 1-8-07: Constellation Energy & Hertz take top honors]]>http://www.bloggingstocks.com/2007/01/08/analyst-initiations-1-8-07-constellation-energy-and-hertz-take-to/http://www.bloggingstocks.com/2007/01/08/analyst-initiations-1-8-07-constellation-energy-and-hertz-take-to/http://www.bloggingstocks.com/2007/01/08/analyst-initiations-1-8-07-constellation-energy-and-hertz-take-to/#commentsFiled under:

MOST NOTEWORTHY: Constellation Energy Group (CEG) and Hertz Global Holding (HTZ) were the most notable downgrades this morning.
  • Deutsche Bank initiated shares of Constellation Energy Group (NYSE: CEG) with a Buy rating and $78 target; the firm said valuation is compelling as the market has barely priced in the valued of BED, the merchant plants and the PV of the current backlog.
  • Wachovia started shares of Hertz Global Holding (NYSE: HTZ) with a Market Perform rating. They see limited upside to shares due to broader economic concerns.

OTHER INITIATIONS:
  • Merrill Lynch initiated shares of Winnebago (NYSE: WGO) with a Neutral rating, saying shares are fairly valued.
  • UBS initiated shares of KBR, Inc. (NYSE: KBR) with a Neutral and $26 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst initiations 1-8-07: Constellation Energy & Hertz take top honors originally appeared on BloggingStocks on Mon, 08 Jan 2007 11:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>cegconstellation energyConstellationEnergyhertzhtzibrkbr IncKbrInctheflyonthewall.comwgowinnegagoMon, 08 Jan 2007 11:45:00 EST<![CDATA[Analyst initiations 12-26-06: KBR Inc started at Wachovia with a buy]]>http://www.bloggingstocks.com/2006/12/26/analyst-initiations-12-26-06-kbr-inc-started-at-wachovia-with-a/http://www.bloggingstocks.com/2006/12/26/analyst-initiations-12-26-06-kbr-inc-started-at-wachovia-with-a/http://www.bloggingstocks.com/2006/12/26/analyst-initiations-12-26-06-kbr-inc-started-at-wachovia-with-a/#commentsFiled under:

MOST NOTEWORTHY:
  • Wachovia(NYSE:WB) initiated KBR Inc (NYSE: KBR) with a Market Perform rating based on valuation, with a target range of $26-$29.
  • Lehman Brothers (NYSE:LEH) initiated Constellation Energy Group (NYSE: CEG) with a Sector Performer rating and $26 target.
OTHER INITIATIONS:
  • Hansen Medical (NASDAQ: HNSN) was initiated at JP Morgan(NYSE:JPM), as the firm believes Hansen's Sensei robotic remote catheter navigation system has potential to be a platform technology that could be used in a variety of procedures. The firm also considers Hansen's shares attractive at these levels.
  • UBS (NYSE:UBS) initiated Smith Micro Software (NASDAQ: SMSI) with a Buy rating and $18 target; the firm expects Smith Micro to continue to benefit from growth at Verizon Wireless and for the company to continue to further divest its customer base.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst initiations 12-26-06: KBR Inc started at Wachovia with a buy originally appeared on BloggingStocks on Tue, 26 Dec 2006 12:07:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>analystcegConstellation EnergyConstellationEnergyHansen MedicalHansenMedicalhnsninitiationKBRlbrratingSmith MicroSmithMicrosmsiTue, 26 Dec 2006 12:07:00 EST