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Niaz90
Nov 10, 2023 10:10 PM

HE Target $32 Long

Hawaiian Electric Industries, Inc.NYSE

Description

HE seems extremely oversold compared to EPS.
Price is mostly news driven. Expecting a quick recovery.
Target $32.
Comments
aShiftyLad
At first this felt alot like the APLS crash out (went from 90 to 18$ and is already back to 50$ range regainign to highs over next few months); but the major difference here is major legal battles and bad public opinion. So while this is likely being bought up volume by institutions currently, I don't expect a fast recovery until atleast the base level legal proceedings come public. (This is as someone who bought jan 2025 STRIKE 25$ calls on it essentially after the initial crash after the fires)

edit* From a TA standpoint we havent even broken $15 dollars yet, (Double top retest on it) and after that itll be a push to the 20$ region before gap fill. Until we see some massive (2.5x +) daily volume into this, I dnot see it recovering for atleast another 6 months to a year.
Niaz90
@aShiftyLad, market seems to have priced in the worst already but yea it could probably take another 6 months to a year to fill the gap.
aShiftyLad
@Niaz90 agreed on the worse case price in, that was the initial drop from over reaction. Even if they are liable for half the wild fire damages, they're customer based isn't hurt nor is there bottom line (only electric company on the island) so it'll be a year of lower profit to pay fines/legal (if looking at fundamentals), and then just a bit more bad news which really would drop this much more
Niaz90
@aShiftyLad, agreed
Johnny_Roses
Lol, great prediction, how is that working for you?
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