One of the values that will have to be more attentive during this year that we have just started is undoubtedly the listed Day. Not surprisingly, it is one of the values that have depreciated the most during the past year. Where it has come to lose more than 100% of its value in its stock market, and that it has been the subject of negative advice from financial analysts who have given the sell order as the most recommended. Although there is no doubt that with this value anything can happen from now on.
The distribution company in food production is already below the euro unit but I indicate that its situation may get worse in the next few months. It may even be placed below 0,50 euros per share. In what would be a powerful new sign of weakness that would limit the rebound movements in the value. Not surprisingly, at this time it is very complex to assess what direction it can take.
Día is one of the securities that make up the selective index of Spanish equities, the Ibex 35, although rumors suggest that he could leave it at any time. Not surprisingly, its trading volume has dropped a lot in recent months as a result of its loss of interest among small and medium investors. Even with the possibility that it will stop trading on the financial markets.
Day: below 1 euro
All investors are surprised that their share price is currently below one euro. Especially when a few years ago it was at levels of 5 and 6 euros per share. In other words, you have lost more than 100% of your valuation in a very short space of time. In one of the great surprises in recent years by national equities. Although on the other hand, they wonder if it is a good time to open positions in the value with the price so low that it is currently showing.
In any case, it must be clarified that although the Day shares are trading below one euro unit, it does not necessarily mean that the stock is cheap in price. If not, on the contrary, what it shows is a very extreme weakness and it may still have a lot of downward travel. Where it would not be very strange if it could visit levels a little lower than 0,50 euros in the coming weeks.
Do you have an upward journey?
Quoting at current prices, it is the rule that small and medium investors wonder if this value is not a real buying opportunity. Well, in this sense, there are several financial analysts who believe that Día would have to recover 160% of its current valuation to get bullish again. It is something very complex that it can materialize, at least in the short and medium term. Because its trend at the moment is very clear since it is none other than very bearish at all investment terms.
On the other hand, we cannot forget that when trading below the euro unit it is much more difficult to recover this important level. As has happened to other national equity securities that have gone through this same situation. Although, on the other hand, it should be mentioned that it could be one of the stock securities with the greatest potential for revaluation, but with a risk that is more than evident in all its operations in the financial markets. With a very high volatility since it presents a great difference between its maximum and minimum prices.
Bad business results
Another aspect that has led this company to be listed at its current levels is the weak business results it has presented in recent quarters. With a very significant increase in its debt You are questioning the viability of your line of business. On the other hand, in this sense, negotiations with banks to reduce it take on special relevance. Of course, its business situation has deteriorated significantly in recent months and this is one of the reasons why its share price has plummeted with such intensity.
It should also be mentioned that the food distribution chain is losing market share compared to its main competitors. In this scenario, there are already very few investors who continue to trust this value of the selective index of Spanish equities. To the point of being one of the worst behaved in the last twelve months. With a very clear imposition of sales on purchases, with an intensity rarely seen in previous years. And in this way it does not go up, far from it.
Trade on value
At this time, any entry transaction in the listed company implies a great risk that is higher than that of other equity securities. In any case, as soon as you improve your business ratios, you can generate a very interesting reward for small and medium investors. It will be the counterpart that this movement will have from now on. Not in vain, the recuperación a few cents in its valuation can represent an amount of many euros in the operation.
From this perspective on investment, it becomes very sensitive to operations carried out in the same trading session. That is, for movements called intraday. On the other hand, it is also necessary to explain that this company distributes a dividend among its shareholders every year with a profitability close to 7%. Being one of the highest of the Ibex 35. Although at some point it may be reduced or even eliminated as a result of the fall in profits of this value so representative of equities in Spain. With a very clear imposition of sales on purchases, with an intensity rarely seen in previous years.