Bet on a CDU election victory in Germany
Well, it is foreseeable that the sceptres in our country will soon be realigned again. In the course of this, the losers ($MMK (+0.7%) ) can be replaced by potential winners.
In this context, the shaken energy companies in particular should have more lucrative prospects again thanks to the influence of the lobby. For this I have chosen RWE $RWE (+1.49%) for this.
Here are the reasons:
- In the wake of the shaken economic situation, particularly due to high energy prices (especially grid fees), there should probably be relief for large-scale industry in order to avoid further migration.
- The energy transition should no longer be seen as primarily necessary. It is therefore logical to conclude that the coal phase-out should be called into question once again in order to temporarily secure jobs and avoid overburdening lignite regions and the federal budget for restructuring programs.
- Furthermore, a potential government is currently showing little ambition for a possible return to nuclear energy, as a result of which coal and gas energy sources will logically continue to be of essential importance for the business location, which is likely to be in the interests of the lobby.
- In addition to this, RWE is showing particular ambition in the restructuring of the business area, which can therefore be seen from the fact that the operating margin is growing massively as renewable energy sources increase.
- The expansion into markets outside Germany and the EU is aggressive, which should allow them to benefit massively from various national subsidies.
In general, the prospects on the energy market for suppliers/producers are likely to improve again in the future as the Russia-Ukraine conflict eases, which in turn could make cheap raw material imports from Russia a reality again.
State shareholdings for potential loss-making transactions by corporations are also deeply rooted in the CV of the Christian Democrats, which is why the loss potential is likely to be very much in line with expectations.
Rising share prices with a target of €40-45/share and rising dividends are a pretty safe bet, in my personal opinion. (Tranche 1/3)
