The DISK merger has been terminated again but before the announcement, a reader, PlanMaestro, left a very detailed analysis of the company as a standalone and I felt it was a waste to leave it in the comments. If you follow his calculations, you’ll get an understanding that the company is cheap. [Regarding DISK] Up to [...]
Continue reading...Wednesday, December 31, 2008
The Puget Energy merger has finally been approved on December 30, 2008. After more than 1 year since I first got wind of this deal, the entire deal is expected to close in 2 weeks for $30 cash. Surprisingly, PSD is still trading at a discount to its final closing price. It is currently at $27.50. This still leaves room for a 9% gain with all uncertainty eliminated.. In my last post on PSD, let's take a step back and review what happened, how I went about doing things, what went right and what went wrong.
Continue reading...Friday, December 12, 2008
It has been announced that the PSD merger will not close by the end of year. The merger agreement requires closing the deal 15 business days after all requirements have been met, including approval by the Utilities and Transportation Commission. Today being the 12th and not expecting an announcement this week, we run out of days in December for it to work out. A New Question Regarding The Merger On hearing the news, a slight concern related to financing came to my mind. What happens to the capital if the financing condition is based on a closure date of 2008. Would the money still be available in 2009?
Continue reading...Saturday, November 29, 2008
Lately the price of PSD has dropped as much as 10%. If this was a regular market, that could mean something, but we are not in a regular market - it's still driven by fear and emotions. The status of the merger has not changed one bit from my last post. There have been no new publicly announced press releases, but some interesting filings with the Washington Utility and Transportation Commission (WUTC) may be of interest. Recall that I wrote about how the final reply briefs had to be submitted by October 23,2008. Well, there were plenty of submissions and responses. I'll provide a brief look at what's been going on.
Continue reading...Monday, November 3, 2008
Before I begin, let me start by saying that if you are invested in this PSD arbitrage and feel uneasy about the press Puget Energy has been receiving, I encourage you to sell out. You'll still end up with a profit now and more comfortable nights.
Continue reading...Friday, October 17, 2008
I wasn't planning to write an update on the PSD arbitrage but a reader asked for my opinion on how I currently see the PSD merger so I'll share it with everyone else and try to provide additional information.
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Tuesday, April 21, 2009
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