If they were free, why not keep ‘em and see what’s next?
—you can’t sell ‘em at a loss. If you sell them all for a penny, that’s still a gain.
—Buffet just might fix what’s ailing the place, and make ‘em worth more in the process. You think he wants to buy yours in order to let them lose value?
Been wishing I’d bought energy stocks a while back meself.
So far as I can tell, this is a simple buy-out. I’ll get $26.50 for each share I own. Constellation will just be part of the Mid-whatever group now. It won’t be it’s own company.
Constellation was a good company. It’s stock ran up unreasonably high for no good reason I could tell, but had come back down (I don’t watch stocks every day).
I figured it had up and down motion, but never thought it would be caught up in the credit squeeze. They are an energy company, not a bank stock.
I’m certain that Buffet knows the company is worth a lot more than $26.50 a share. But there’s no way I can make money on that, except I guess I could take what he pays me and buy shares in his company.
My mistake, as always was not to diversify. We’ve just held the stock so long that we had a lot of extra shares from dividend reinvestment. At some point I figured I should sell the shares that had been generated, and keep the originals, but while I tried to schedule a review with my advisor about 6 months ago, I’ve never gotten around to finalizing the meeting, much less communicating the thought we might want to sell.
It could be a lot worse. If I had learned my stock was sitting at $24 and dropping, I’d be panicking. But this is more like a finality. I know what the price is, I know I’ll get paid, so I can move on.
At least i didn’t inherit Lehman stock.