Why NV Energy's Shares Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of NV Energy jumped 23% today after the company agreed to be bought out by BerkshireHathaway .
So what: Berkshire's MidAmerican subsidiary has made the offer to purchase NV Energy for $23.75 per share, and both board have approved the deal. If all goes well, it is expected to close in the first quarter of next year.
Now what: This is the latest major move into energy for Berkshire Hathaway as Warren Buffett looks to add consistent cash flow from the utility business. The move adds 2.4 million electric customers to the company and natural gas services to 145,000 people. Shares are trading within $0.10 of the offer price, and Berkshire isn't one to get into a bidding war, so I think now is a great time to sell NV Energy and cash out on today's pop.
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The article Why NV Energy's Shares Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium manages an account that owns shares of Berkshire Hathaway. The Motley Fool recommends and owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.