Amidst all the turmoil in the banking sector and with AIG, not much attention has been paid to Constellation. Shares have been plummeting throughout the week, down about $40 in 2 and 1/2 days alone. Just in this calendar year, the stock has fallen from a high of $108 to currently hovering around $18. Reuters (and numerous other outlets I’m sure) are reporting potential for a sale. Concerns seem to be centered around liquidity–high collateral requirements for their trading business, which may prove to be backbreaking in the case of another credit rating downgrade. What do you guys think?
dump her, she’s done
Sounds like about the same thing as SemGroup. Couldn’t come up with enough collateral for their trading operations. Poof.
Constellation looks cheap! The market is pricing their assets at less than $1.80/watt. It costs $2.47/watt to make nukes and it costs $1.50 to make coal. They’re like 60% nuke. Still, i would wait. If it’s one thing I’ve learned is values may happen quickly (i.e. the 40% slide) but the market gives you plenty of time to buy.
Everyone is waiting on Moody’s decision. If Moody downgrade them two notch, company is in huge problem. Otherwise, the stock will be up sharply. Unless you know what Moody will do, it’s probably best to steer clear.
IronMan Wrote: ------------------------------------------------------- > dump her, she’s done Guess you were wrong IM
I knew it was cheap. This is why it is good to be Buffett. Nerves of steel. Tons of capital. Good information… makes me want to buy berkshire stock.
I would buy it if he was 30 years younger…