MILESCFA

Constellation Energy Group: Reasons Behind the Sell-Off

"Me thinks you think too much." The deal with EDF was obviously NOT very appealing because the stock never really moved on it (and I'm not a bear on it; I was long and bought more).

I think CEG dropped because

1) Moody's/S&P downgraded the company.
2) CEG is looking to cut the 8% dividend 50-60%.

So what you're left with is a company with a management that screwed up in the first place. I don't know what it's worth, I don't know what to do with my stock, and this uncertainty is certainly another factor in the stock's drop (Wall Street hates uncertainty).

CEG Parts with Buffett without Shareholder Approval

"Shareholders were nevertheless likely to be overall positive on the deal given previous opposition to the MidAmerican $26.5 bid as being too low."

That's what I thought but the stock sold off hard, an expensive lesson. What I did not anticipate is that as part of this deal, the rating agencies would downgrade the company and CEG would cut it's dividend.