EOAN and RWE

German power prices racing to the highs here following coal and carbon prices. EON has been an absolute dog since the spin off 5x leverage bites and the market is waiting for a rights issue. That is the risky one, but worth a punt at these levels.

RWE is more leveraged to power prices and is also IPO’ing INNOGY, which was covered through the range with a ~20bn EUR market cap. That means allocations are likely to be thin and RWE retains a 90% stake for now. So that is the cheapest way to gain access. Even with a hefty conglomerate discount that market cap means RWE should trade a lot higher.

BOTH ARE TRADING BUYS HERE