Back in March, Exelon’s $7.9 billion merger with Constellation Energy formed the largest competitive energy provider in the US. And deal resulted in Exelon receiving the 2012 Platt Global Energy “Strategic Deal” Award.
The deal also resulted in an investigation by the Justice Department. And last month, Exelon agreed to pay $400,000 to settle the government’s claim that it violated orders to limit electricity prices as part of the approval of the Constellation deal. The company said the violations were the result of “inadvertent errors”.
But there was nothing inadvertent about the market’s response. The news sent Exelon stock down – sharply.
Looking at a chart of Exelon over the past couple of years, the stock is a perfect example of why you need to know when to let go of a loser “SELL”. It’s down over -30% so far this year, down OVER 65% in 5 years. Our Longer Term MTI indicator signaled a Sell Back in 2008 and again in 2012. Following the simple 200 moving average would have also signaled to Sell and saved investors in this stock a Fortune.
You have to know when to Buy and more importantly when to SELL, don’t get complacent. Sometimes you need to Sell!