CEP (Constelation Energy)

CEP came public mid-November at $21.00. I was able to get some shares on the initial deal and turned them out at a decent profit gradually.

After consolidating between 23 and 24 for quite some time, the stock made a strong move on the 18th and I picked up 5,000 shares at 23.55. This was about a 1.5% position in my account which is a normal size for a trading position. The stock continued to advance quickly over the next few days as expected. Volume left a bit to be desired but that is normal given the holiday season so I gave more attention to the actual price pattern. After making a new high on the 27th, the stock had 2 quiet days and I decided to take half of my profits off the table as the stock made a nice run and it is difficult to judge where the stock will move when the market opens for the new year in 2007.

The stock backed off significantly in early 2007 due to the overall energy market being punished. I went ahead and took the rest of my profits on the 5th as the sector now looks uncertain at best. Still i cleared $6,000 on the trade in a few weeks which is not a bad return.