Market Overview

Hawaiian Electric Is A Great Traders Stock


Hawaiian Electric Industries, Inc. (NYSE: HE) is the monopoly electricity provider for almost all of the state of Hawaii. Hawaiian Electric's main business, besides it's electric services of course, is American Savings Bank. American Savings Bank is one of the biggest banks in Hawaii.

I am writing this article to show you how good of a traders stock Hawaiian Electric is. Many on Seeking Alpha for example, cite solar as a big problem for Hawaiian Electric in the longterm, but we are not focused on whats to become of the company in a decade or two. Hawaiian Electric has never in its history as a publicly traded company lowered or failed to make a quarterly dividen payment. The company trades for a bit less than book value, and its main business is a monopoly. 

Hawaiian Electric is a stock I wouldn't be worried about holding in a recession or turbulent times. Yes, it may go down with the market, but it has a defined value of around $25, and will remain at the value for quite some time. Throughout the year, the stock sticks around $25, but wavers upwards to $28 and all the way down to the $23 area. Those specific high and low zones are perfect ranges to buy and then sell/short (HE). Once the stock hits the $27+ range, it is a safe time to short or sell your current holdings. While when the stock sneaks below the $25 range, into $24 and even better, $23, the company is a screaming buy. 

Recently, Hawaiian Electric traded down from its typical $25 spot, to around $23.5, I loaded up my portfolio with the stock from $24.5, all the way down to $23.5. I did this in time to make the ex dividend date, and then sold a few weeks later for just under $25, collecting a nice $0.31 per share dividend while at it. 

Right now, I am wating for Hawaiian Electric to either make a large plunge again in the $24 range to make a big buy, or to watch it go up to $27 and beyond to short. I am not worried about getting stuck with the stock, because the fundementals behind it and dividends are great. 

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.


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