Pepco Holdings


Nearest Resistance: $27.25
Nearest Support: $23
Catalyst: Acquisition

Pepco Holdings (POM) is up more than 17% this afternoon, following news that Exelon (EXC) was planning to buy the regulated utility for $27.25 per share in cash. That offer price leaves a small 1.9% premium left in shares as I write this afternoon, a reflection of investors' high conviction that the deal will get done.

Pepco has been one of the biggest beneficiaries of the flight to yield that's rewarded dividend-paying regulated utilities in 2014, and shares have been going parabolic in the last couple of months as a result. But with the acquisition plans public, the money has already been made in the POM deal. It's best to sit on the sidelines at this point.

If you liked this article you might like

Pepco (POM) Stock Surges After Regulators Approve Exelon Deal

Trade-Ideas: Pepco Holdings (POM) Is Today's "Barbarian At The Gate" Stock

Hard to Shake Pepco POM-Poms Without Merger

Hard to Shake Pepco POM-Poms Without Merger

Today's Water-Logged And Getting Wetter Stock: Pepco Holdings (POM)

Closing Bell: Pier 1 Surges on Preliminary Sales; U.S. Stocks Mixed