REMAINING REASONS TO BE BULLISH
WHY I’M BEARISH
WHAT I’M DOING
- Green energy & ESG projects are still top of mind for many investors
- We still remain above the 100 week moving average and in the green channel
- “Only” trading 26x above earnings
- Growing earnings at 8% a year
- Paying a modest dividend of ~2%
- Not much else I’m afraid…
WHY I’M BEARISH
- The weekly RSI has just entered the bull zone
- We’re perilously close to crossing below the 100 week moving average and on a declining trajectory
- Very much overdue a correction
- A normal P/E ratio would be in 15-18 ratio. This would price it back in the $30s.
- Much better value stocks in the energy sector, paying much higher dividends.
- NEE have traditionally paid as high as 4% yield going back to the early 2000’s, the decline to 1.6% in December 2021 may yet be “beaten” with an even lower yield this time out. This will likely turn away many savvy investors looking for underpriced value.
WHAT I’M DOING
- Definitely NOT buying this stock, not even 30% off all-time highs
- Will be wanting for the trigger to confirm in order to enter short in the coming days
- First target would be $35, with a terminal target of $18 to come back and retest an important level. This would also coincide with the 0.618 fib off the entire 40 year move.