This month will go down in history for having dragged the actions to its lowest moment in recent years. Where its price has been at levels of 7 euros per share after having been depreciated from levels of 9 euros. With a depreciation close to 20% in this period, something that there was not in recent years. It is special, since Telefónica is considered one of the most stable values in the Spanish selective index, the Ibex 35. But what has really happened to the telecommunications operator of reference for investors?
The fact that sales have been clearly imposed on purchases is due to the fact that their technical aspect has deteriorated significantly. Having broken the important support I had at 9,10 euros. To the point that the selling stream has taken advantage of this circumstance. To reach current price levels and that could become an entry level to make the savings profitable from now on.
However, there is a force majeure to explain what is happening with Telefónica at this precise moment. It is due to the performance of certain investment funds that have pushed prices down with the aim of entering their positions at much more competitive prices than until then. In this sense, the performance of these financial intermediaries may give some clue as to what your investment strategy should be in the coming days.
Telefónica: has it touched down?
In the opinion of a large part of financial analysts, the price of the shares may have reached the bottom. However, the key will be to respect its new support, which is located very about 7 euros the action. If it supports it, it cannot be ruled out that it will return to its price level in previous months, or even try to get closer to 10 euros. In any case, at these current prices, everything seems to indicate that this value is a business opportunity. At least in the medium and long term, which is a very suitable period of permanence to make investments in this important value of the national variable income.
On the other hand, it cannot be forgotten that the telecommunications operator is one of the most generous values in the distribution of dividends to shareholders. With a fixed return and you are defensive. Not surprisingly, they have a fixed income within the variable and with a higher yield than the main products intended for savings. For example, fixed-term deposits, high-income accounts or even national bonds. Where in all cases the profitability of 1% is rarely exceeded, even from some profitable models until a few years ago.
Handling of funds
In any case, the month of September has revealed the great role that investment funds have played in bringing their shares to their current price levels. There is a lot that these funds are at stake and at the moment they are interested in that Telefónica's prices are so low and at levels not seen in recent years. From this perspective, there is more you can gain than lose. Not surprisingly, analysts think that he already has little downward travel. To the point that it can be a purchase object.
In another vein, if you are going to direct long-term operations, you will not have many problems so that at some point your actions can reach 9 or 10 euros or even higher levels in its price. In other words, with a potential revaluation of very close to 30%. Despite the fact that in the shortest term there is no doubt that volatility has been installed in the formation of their prices. Where it can continue to give more than one dislike, especially if the financial markets change trend and the selling current prevails among investors. With an intensity very little known until now.
Not so positive results
Another aspect that can explain this tremendous downturn in Telefónica's shares is that its business results have disappointed a large number of investors. Their lines of business are not responding to expectations created since the beginning. And this explains why the shares have depreciated due to the fear that the company's profits could suffer in the coming quarters. In other words, these are not business results that small and medium investors have liked.
The problems in emerging economies is another factor to explain this significant drop in the prices of the national operator. Because in effect, the problems of the American countries can seriously harm Telefónica in its objectives for the short and medium term. In this sense, his latest business results they show a slight paralysis in their accounts as a consequence of some of the causes mentioned above.
Earn 8,6% more than in 2017
In any case, it must be emphasized that the national operator has obtained a net profit of 1.739 million euros in the first half of the year, which represents 8,6% more than in the same period last year. All this despite the drop in income due to the impact of currencies, and that they have played against the interests of Telefónica.
On the contrary, net debt - one of its greatest dangers - has stood at 43.593 million in this period. This represents that it is about 10% less than just a year ago. Although the most relevant data is that it reduces its debt for the fifth consecutive quarter, although it has not had much impact on the price of its shares. Where Spain remains the first market for the telephone company and is a factor to be taken into account by investors in order to make their savings profitable for the next few years.