Exelon Acquiring Pepco

[Mulligan]

There is a meeting and possibly a vote Wednesday. Looks like it sank today and I expect a bigger hit when shareholders realize their March divi is MIA unless they get approval. With all the politics its a spec trade.

You guys are hilarious.
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As long as I can make dumb trades and still not lose money I guess its ok. Better than making dumb trades and losing money, I guess. Moodys strongly suggested by companies finances as a stand alone company they would either have to cut the dividend or severely curtail capital spending. Im not an electrical user in their territory, but I did read in 2014 they were voted worst company in US by their customers. They even managed to beat out Comcast and all the cable companies. I didnt think that was possible! So evidently they got some much needed capital upgrades to dole out for, so the dividend may get a haircut... No growth, no dividend increases and potential divi cut on a utility is a bad investment choice.


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[Mulligan]

What an idiot I am! Up $5 today! If I had hung on one more day I would have made $2500.... No guts no glory....


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[Hamster]

What an idiot I am! Up $5 today! If I had hung on one more day I would have made $2500.... No guts no glory....

I was convinced from your detailed summary yesterday that this was a hopeless investment. By the time I got around to selling, however, the merger had already been approved and I sold the 400 shares I bought last week for 27.14. Possibly the best really stupid investment I have made.


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[Mulligan]

What an idiot I am! Up $5 today! If I had hung on one more day I would have made $2500.... No guts no glory....

I was convinced from your detailed summary yesterday that this was a hopeless investment. By the time I got around to selling, however, the merger had already been approved and I sold the 400 shares I bought last week for 27.14. Possibly the best really stupid investment I have made.


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Good for you Hamster! Sometimes ignorance is bliss...And it would have been for me if I hadnt started studying the detailed finances of the company and Moodys financial analysis... I started worrying more about being caught "holding the bag" than I was thinking about my original thesis with no analysis that this merger is going through by hook or crook because EXC has too much money in it now to let it die.
Oh well, this is why most of my money is in preferred stocks...I cant handle the heat so I mostly stay out of the kitchen...


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[Al18]

Note sure why you got such low prices for EXC. I googled EXC and over the past 5 trading days, this stock price varied from $34.56 to $35.25.

 

[Mulligan]

Note sure why you got such low prices for EXC. I googled EXC and over the past 5 trading days, this stock price varied from $34.56 to $35.25.

No, we are talking about Pepco (POM) the company being acquired.


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[Hamster]

Note sure why you got such low prices for EXC. I googled EXC and over the past 5 trading days, this stock price varied from $34.56 to $35.25.

POM was up 26.8% today on the news that the merger was unexpectedly approved. Not quite like winning the lottery, but an unusually good short term trade.

 

[Mulligan]

POM was up 26.8% today on the news that the merger was unexpectedly approved. Not quite like winning the lottery, but an unusually good short term trade.

That is what ticks me off about what I did...It wasnt the money...I would have had to pay 31% to Uncle Sam so we were talking about $1700 net... Easy money, yes, but chump change still. It was about proving how smart I was getting in and out and patting myself on the back for my one off trading skills.....And I failed....


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