Red Electrica Española (REE)

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.

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