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.

Actions:

• Buy at 17,26€
• Sell when RSI is over 70%
• wait for dividends
• Wait for a second short.