NRG Energy, Inc. (NYSE:NRG)

CAPS Rating: 4 out of 5

A wholesale power generation Company, which provides the ownership, development, construction & operation of power generation facilities, the transacting in & trading of fuel & transportation services & the trading of energy, capacity & related products.


Player Avatar FSaucy (99.93) Submitted: 11/21/2008 5:33:35 PM : Outperform Start Price: $18.85 NRG Score: -93.87

I love that they rejected the 6.1B offer.

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Member Avatar RiverRover (86.21) Submitted: 11/25/2008 10:49:27 PM
Recs: 0

OK, so now they're approaching the stockholders about the buyout. What does everyone think? How should we respond?

Member Avatar FSaucy (99.93) Submitted: 11/26/2008 6:09:00 PM
Recs: 0

From Google Groups:Do not take the short term bait with Exelon's plea yesterday. If it's a good deal, why should they need to "urge" anyone? It's a plea that any serious NRG investor will see through. We have the power and intelligence to not let this go through. Exelon is playing on peoples' general thirst for ANY short term profit opportunities in this down market. It doesn't take a business analytical genius to realize in this exchange that a fair value for NRG is far higher than Exelon can currently afford, and Exelon knows it whether they admit it or not. This drastic market undervaluation is Exelon's only opportunity to ever aquire NRG, and they are acting on it. A few years from now, NRG will be valued properly and way out of Exelon's league. Buffett has been increasing stake in NRG on the way down, with 5M shares out and an estimated average price of $35.50. Buffett famously buys with a big moat, so that might give you a hint at where he puts the valuation. Oh and why have there been MULTIPLE officers buying up shares like crazy in the low $30's? There's only one reason why insiders buy their company's stock: Because the market has made it under valued and they know deep down it is fundamentally worth much more. Think about how insulting it is for the insiders then to see an outside company so arrogantly claiming them to be worth only $26.18 per share. I speculate that it may have been Exelon's plan from the beginning, knowing NRG would reject such a ridiculous offer and then using a plea to shareholders to take profits in order to get a cheap deal. I applaud NRG's board for their committment to their shareholders' long term interests. NRG is better off in the long run remaining independent, continuing growth. EXC: Since you don't have the capital to offer $9B+ cash, please stop bothering everyone with your insults to our awareness.

Member Avatar FSaucy (99.93) Submitted: 8/7/2009 5:23:56 PM
Recs: 0

Congratulations to all NRG holders on the EXC offer rejection. Hold on and who knows, EXC could be the target of NRG. I think NRG hits $50 within 2 years.

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