Why did Constellation Energy Group's stock crater after the company announced it was rejecting Warren Buffett's $26.50 cash deal for an investment by Electricite de France? Nick Abe on Seeking Alpha has an idea.

The problem CEG had with its stock price was entirely due to management’s explanation of the deal on the conference call. The real sell-off didn’t start until the conference call was over. The reason is pretty straightforward: management did not do a good job explaining, in simple terms, why this deal was better.

I, unfortunately, listened to the entire call and they spent very little time talking about the value of the assets they had, but instead spent the entire time talking about being focusing on debt reduction to the point of being “myopic”. For the record, it is never good to describe yourself as myopic. In my opinion, if they want to restore shareholder confidence, they should create a very simple slideshow. It should list all of their assets, one by one, and detail the revenue, profit, and how they value each one internally. They should also disclose the pre-determined selling price of the 11 assets included in the put option EDF gave them. This would give the market better clarity and help to better explain why this makes their company worth more than $26.50 per share even after the significant dilution penalty of terminating the MidAmerican deal.