Good Risk to Reward Short on HENYSE:HE just finished a $558 million equity offering (Their market cap was around 1 billion), selling 54.05 million shares at $9.25 per share. They will use this to fund 1 of 4 payments for the Maui wildfires. The stock held pretty strong, but we also had a decently strong market last week. Considering the dilution and likely further share offerings it has a decent chance of maintaining it's low PE and with the new shares on board that would price it closer to 7.
The price action from this week gives us a really nice risk NYSE:HE reward setup, and we can either just stop over the wicks of the last 4 daily candles or if we want to swing for a longer move stop at the 20 ma.
