If there is a value that has disappointed all small and medium investors, it has been none other than Eurona. It is currently trading at levels very close to 0,30 euros per share. When just a few years ago I was in the three or four euros and with prospects of revaluation in the short and medium term. It has been one of the most glaring mistakes that some financial analysts have had who announced that it was necessary to take positions in value in order to achieve 5 euros in its revaluation.
But it has been seen that there have been many interests to influence the decisions of small and medium investors. Not surprisingly, those who have fallen into this stock market plot have lost more than 200% of their valuation compared to a few years ago. Without their prospects being optimistic at all from now on. If not, on the contrary, its price can be directed to 0,20 euros in the coming months as a consequence of its marked downward trend in all terms of permanence.
Not only has it been a disappointment to all retail investors, but in the end the objectives have not been met of the business projects that they wanted from the direction of this disappointing technology company. Where investors who had taken positions in the value in previous years have left almost all the euros they had invested in order to make them profitable in the equity markets. Rather, it has been the opposite and now we just have to wait and take advantage of the occasional rebound with special force to undo positions in the value and never return to it.
Eurona, small cap value
This is one of the least liquid securities within which Spanish equities are constituted. But where it really trades is the Alternative Stock Market (MAB) which is where the lowest capitalization securities are integrated. Eurona is a company that is within the group of the Spanish multinational telecommunications company. Providing wi fi services in areas with less access to this form of communication and which has, after all, failed in its attempts to offer this service to a good part of the users spread throughout the Spanish geography.
It cannot be forgotten that this is a telecommunications, multi-connection and Internet service company. As stated on its website, it has a presence in more than twenty countries and with more than 40.000 clients, Eurona offers connectivity in areas with poor or no coverage, especially in rural areas and municipalities with less than 100.000 inhabitants.
With multiple business units
This MAB company incorporates four business units within the new technologies. Although their commercial strategies have been focused on satellite operations. For example, the Internet through satellite technology in homes, companies, schools, hospitals and even ships. As well as the so-called services for services for foreign clients: Internet, international calls, international television channels for this group of foreign clients. Although it seems that without interest to the national equity markets.
While on the other hand, some of its most relevant business projects have not managed to get ahead. As a consequence of these actions, the financial markets have generated that its price has collapsed until reaching the current levels below the euro unit. From where it is very complex to get out, as has been shown in some of the stock values that have gone through this difficult process in the conformation of their prices. Where one of the reasons for concern on the part of investors is that their shares stop trading.
Business plans until 2022
Its business plans for the next four years include the possibility of profiting from the excess capacity, both in Fixed Wireless and in Satellite, investing in attracting and reducing customer disconnections up to 24% per year. Like its desire to carry out an operational cash generation in the medium term and sustainable profitability. Not very fortunate because their short positions have been very clearly imposed on the buyers in recent years. With total clarity and hardly any rebound of a special relevance.
On the other hand, it cannot be forgotten that this is a small company that lives on expectations in the financial markets more than on realities. That they have not been able to maintain the opinion of financial agents and intermediaries. To the point that it can be said without fear of error that it is one of the most negative values of national equities. Few have depreciated in such a way and with a high virulence in the fall of their shares. That is, right now below the euro unit, with what this really means.
There is no goal ahead
In any case, there are no investment strategies to develop from now on. Because in no way can it be said that the price of its shares is cheap. Not much less. If not, on the contrary, it has been the market that has put it on its site and everything indicates that it may go further down in the next trading sessions. Even with the possibility of an even more negative surprise. In all cases, it is a value that should not be touched in any way unless you want to take a series of totally unnecessary risks.
Eurona is no longer even an attractive security for speculative or more aggressive trading. Neither for this you can do any strategy in the investment, nor in the trading movements. Not surprisingly, it is one of the securities with the highest risk that you can find at the moment in Spanish equities. Where you still have a lot to lose from now on and of course nothing to gain. In addition, it has a volume of negotiation of its titles that is day after day at minimum levels.
It can be close to 0,10 euros
One of its main risks is that it may head to the lower base of its bearish channel. Around 0,15 euros per share and from where its reaction capacity is practically nil. More on the other hand, you can get hooked on their positions if you open positions in the stock. That is, with the sale price very far from the purchase price. With all that this clear trend means for a good part of small and medium investors.
Not surprisingly, it is in a situation of free descent or what is the same, without resistance supports underneath and that can lead to even lower levels in the coming years. Where it offers a danger in its operation that does not compensate you in the least to apply any investment strategy, no matter how aggressive they are. You have to forget and think about other values where it is not so difficult to make the savings profitable in an efficient way. And there is no risk of losing many euros along the way from the current positions.
From this point of view, there is nothing to do with Eurona titles. Although it is thought that they can recover in the coming months or even years. Not in a security to invest right now.
Pact for rural disconnection
Eurona, the Spanish multinational telecommunications company, proposes a State Pact after the elections to end the disconnection from empty Spain, taking into account that the main parties with parliamentary representation contemplate in their electoral programs the importance of Internet access in rural areas.
Depopulation has become one of the workhorses for the services of this company to expand. As a formula to find a business niche that can drive the prices of your titles from now on. To do this, it has opted for different investment strategies but which have not been translated into their valuation in the equity markets. Because its vision of profitability is stipulated in the medium and long term.
Among the measures contemplated is the need for all peoples to be connected to the Internet knowing that a 10% of the population, especially the one that lives in these areas, lacks an ADSL connection or its speed is less than 2 Mbps, which may imply new solutions to this important part of Spanish society.
In any case, Eurona does not have the confidence of small and medium investors. If not, to the contrary, there are not many securities that move every day in the equity markets. At the risk of getting hooked on their positions.