Some notes related to Red Electrica Española (REE)
21 – November – 2019
Positive things found:
- It’s a moat.
- Protected by the government.
- Defensive company with good fundamentals.
- good dividend >5%, dividend growth 5Y 6,75%, so chowder rule >10%
Negative things found:
- CEO is a politician that was minister and now they have given this role to him.
- Hispasat acquisition is not in their core business. It looks like a protection move promoted by the Spanish government.
- Buy at 17,26€
- Sell when RSI is over 70%
- wait for dividends
- Wait for a second short.