The national telecom Telefónica is the value that is currently pulling the selective index of national equities, the Ibex 35, after many months of uncertainty or even with significant losses in its price. You are currently in levels close to 7,60 euros the action, although the most important thing is to know if it will be able to exceed the support amount that it has at 8 euros. If this is the case, there is no doubt that its upside potential will have improved substantially.
At the moment, a good part of the financial analysts are pending of what the teleco can do in the equity markets. Not surprisingly, until a few weeks ago it was immersed in a worrying bearish channel that has led it to be below seven euros. In one of the lower contribution levels of the last times. We cannot forget, on the other hand, that its shares have been trading at 13 euros just a few years ago. In other words, it has lost practically half of its valuation on the stock market.
As a consequence of its evolution in the financial markets, the concern on the part of the different financial agents is not strange. Given the evident fear that it could fall even more in its prices and head towards the level of 6 euros, which would mean entering a technical scenario of free descent. A figure that is the worst that can be given for small and medium investors. Among other reasons, because it no longer has relevant supports in its path and losses can deepen with special intensity.
Telephone. New and good news
After many months without generating positive news to boost its price on the stock market, it seems that the trend has been reversed in recent days. Because indeed, Telefonica Moviles it has been the successful bidder among four offers submitted for the contract with the Social Security IT Management, according to an announcement published very recently in the Official State Gazette (BOE). In any case, the contract has a duration of just one year, which runs from December 1, 2018 to November 30, 2019. In any case, it can be renewed for another year, with a maximum duration, including extensions, two years.
It is, in short, very positive news that can give a boost to the position of this telecom in the national equity index. After many months in a total sluggishness and that has made many small and medium investors have abandoned courage. To opt for others with better expectations on the stock market. For example, companies in the electricity sector or even some construction companies of particular relevance in the equity markets. With a clear presence of the short positions over the buyers.
Alliance with Netflix
Another positive news that can help Telefónica to be one of the best representatives of Spanish equities is its alliance with one of the giants of the communications sector such as the operator Netflix. Not surprisingly, at the end of last year, the new Movistar Merger modalities that incorporated Netflix content in HD or UHD quality.
Two months after the commercial launch of the alliance between Movistar and Netflix in Spain, the figures reveal that more than a third of Movistar's new clients have joined the company hiring Netflix in your package. Likewise, 35% of Movistar customers with access to the products that allow Netflix to watch have contracted this option.
The integration of Netflix in the Movistar + interface has provided a new experience for the user, who can access this platform both in the different sections of the interface and through the search engine.
Strategies for trading value
In any case, some other strategy can be carried out with this value. One of the most relevant is to open positions in case your shares exceed levels of 8 euros. Without assuming excessive risks and that can be allocated various terms of permanence: short, medium and long. Within this general context, this price is the key to entering or not entering the equity markets. While on the contrary, if the barrier of 7 euros is returned, it will be giving a new signal of weakness in the value. And that it could take you to even lower levels and that would invite you to abandon your positions.
On the other hand, it cannot be forgotten that Telefónica is one of the blue chips from the national stock market. That is, those who have a large volume of contracts and with an exchange of titles in all trading sessions. Beyond other technical considerations and maybe also from the point of view of its fundamentals. Being, in short, one of the most active stocks, not only on the Spanish stock market but also on the old continent. Something that can help you climb positions within bullish international financial markets.
Investors with a conservative profile
Another feature that distinguishes this important stock market value is that it is the subject of the most defensive or conservative investors in the market. Where your desires for preserve savings above other more aggressive considerations from all points of view. In this sense, we cannot forget that the telecommunications operator distributes a dividend every year with a profitability of around 5,5%. Through two payments made in the same year and that make it one of the most profitable distributions of the Ibex 35.
Moreover, it is also not an excessively volatile value since its ups and downs in the trading floors are not very violent compared to other stocks. As for example, those of the banking sector in recent months. With percentages very close to 3% or 4% and that can earn a lot of money in operations or lose it if the scenario is unfavorable for the interests of small and medium investors. Despite the depreciation of this relevant telecom of more than 50% in the last seven years.
They are an aspect that must be taken into account to import certain strategies into your operations. Both to make purchases and sales. In the latter case through the Credit sales that allows you to obtain benefits at a falling value. Although it is a financial product that carries many risks and is not adapted to all the profiles of small and medium investors. If not, on the contrary, it requires a high level of learning in its operations.
Enterprise Solutions
Telefónica Spain has been focusing on strengthening the specialized business units in each of these technologies (connectivity, cloud, security, big data, IoT and digital workplace), which in recent years have had a path of continuous growth, placing Telefónica as one of the leading players in the market for new technologies for companies.
“With 'Telefónica Empresas', entrepreneurs will be able to access all the capabilities, services and solutions of the various business units from different companies, through a complete commercial offer both for large companies and for those of medium and small size, as well as the public sector. 'Telefónica Empresas' wants to be the trusted partner to carry out the digital transformation of businesses at a time when digitization is already a reality and a necessity to continue growing ”, added José Cerdán, CEO of Telefónica Business Solutions .
Issuance of the first green bond
Telefónica has successfully launched its first green issue today, for an amount of 1.000 million euros and within five years. The operation, which is also the first to be carried out in the telecommunications sector, follows the presentation to the market of the company's sustainable financing framework. It is also the first issue of a Spanish company in 2019. Through a new investment modality that was unknown to many investors.
The operation has been very well received by institutional investors, whose demand has allowed the coupon to be set at 1,069%, up to 25 basis points below the initial price indications. The final premium paid is only 3 basis points, significantly below the average emissions for the year. The final order book stood at 5,2 billion, representing an oversubscription of more than 5 times. It is worth highlighting the high interest of green investors, with a participation of more than 50%, which contributes to broadening the investor base. In total, more than 310 investors have participated, of which more than 80% are international investors. It is also the first issue of a Spanish company in 2019. Through a new investment modality that was unknown to a large number of investors.