Constellation Energy Group Merger Arbitrage Profits
Constellation Energy Group Merger Arbitrage Profits
(via www.fatpitchfinancials.com)
A review of how I was able to make an 18% return in just four days on Constellation Energy Group. It was a rare occasion where value investing almost felt like day trading.
"Reverse" Arbitrage.
George, Whats you take on a "reverse" Arbitrage. I.e. Shorting the stock if it perhaps trades over buyout price?
Re: "Reverse" Arbitrage
What the margin of safety on doing a "reverse arbitrage" if I were to short the stock if it trades over the buyout price? There is the potential that EDF or another buyer will bid high enough to cause CEG to consider their bid. That would result in a serious loss to a short position.
That said, I could see your "reverse" arbitrage work in other situations.