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Update On NRG Energy Inc. (NYSE:NRG)

What a difference a day makes. Last night I posted about NRG Energy Inc. (NYSE:NRG). A company that I’ve been trading for the last month or so. I’ve made some nice gains and I still feel the company’s stock will continue to rise considering the alternative energy needs in this country.

Something that I did over look in the post is that NRG Energy is in a middle of a hostile take over bid from the country’s largest nuclear power company, Exelon (NYSE:EXC). In October, Exelon offered 0.485 of one of its shares for every NRG share. Many of the NRG investors were not pleased with the offer and stated that Exelon had to raise it’s bid for the independent power producer.

News came out this morning that the company will raise it’s offer by about 12%. The issue is now is that NRG’s stock price has risen above the offering price from Exelon. So now Analyst are suggesting that it means that Exelon would most likely have to materially raise it’s bid to get NRG shareholders support.

At the close of last night (July, 2009), Exelon’s stock price closed at $51.56, which puts it’s bid for NRG at $25.01 a share. NRG shares closed at $26.05 yesterday.

NRG’s stock price opened Thursday at $25.30 and has dropped as low as $24.88. It has bounced back a little, but after today jobless claims and other economic data releases today. I don’t expect any stock to do really good today. We are going into a three day holiday weekend so let the rest of this eek play out on it’s on and see what bargains we’ll have next week.

Happy Independence Day.

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