It seems a lie at this point in the year, but one of the worst-looking stocks at the moment is the national gas company Enagás. To the point that in a very short space of time it has gone from being in a situation of free rise to becoming a very dangerous security to take positions in the equity markets. Because its technical aspect has deteriorated significantly in recent months. With a recommendation to sell by a large part of the financial analysts.
Where it stands out because it has exceeded some of the most relevant supports that it had ahead for the setting your share price. After having reached its all-time highs in the latter part of last year and the first months of 2019. But there is no doubt that it has undergone a very abrupt change in its prices that has determined that the short positions have clearly imposed on the buyers. To the surprise of a good part of the small and medium investors.
But his situation is no longer as it was for just a couple of months, but frankly shows a more deteriorated appearance than before. It is only to perform very specific operations in the equity markets and especially those that are aimed at the shortest terms in terms of their permanence. Among other reasons, because it has unexpectedly become one of the most volatile values in the reference index of the Spanish stock market, the Ibex 35. With a high difference between its maximum and minimum prices that are very suitable for movements of a speculative nature.
Enagás, various business options
One of the factors that in the end have affected the value of national energy the most are the agreements they have reached in recent months. And in any case, they have not been to the liking of a large part of the financial agents. To the point that it has alienated small and medium investors from the stock market value. To address, who was going to say it, to other proposals in Spanish equities that are considered as more secure to protect the capital available in the investment.
From this point of view, it is not an interesting value to be the subject of selective purchases, just as it happened until a few months ago. If not the opposite, it is a listed company with many risks in open operations from these precise moments. Where you have much more to lose than to win right now. Despite the fact that it may still have a potential for revaluation that can be considered as very profitable by some of the analysts in the most famous equity markets. Although the last decision in the end will depend on yourself.
In worse position than electrics
Although they belong to the same stock market, it can be said without fear of mistake that it is one of the worst values within the energy sector. Without knowing for sure what are the explanations to get to this delicate situation. Especially because he looked very good in the first months of this current year. Where it was trading above 25 euros per share and with a projection so that it could have much higher positions. Perhaps above the levels that it had around 30 euros and that would have raised it to higher levels and very ambitious for the interests of small and medium investors.
Now all these projections have been canceled and all investment strategies pass for protecting positions in equity markets. Beyond other considerations of a technical nature and perhaps also from the point of view of its fundamentals. Where the general scenario is something else different, with a downward trend on the main stock indices, both national and outside our borders.
And of course it is much more difficult to make profitable savings than before. With a more latent risk that may complicate movements in financial markets. This is ultimately the reality that emerges in this value and that in reality is not very positive at the moment. Not surprisingly, you can have a travel very high down and what can cause you to have to leave a lot of euros along the way. Even more than you are willing to bear in the first place. To the point of equating this value with the most aggressive ones listed on the national continuous market. With everything that indicates this dangerous situation. With depreciation around the double digits that is saying a lot at this point in the year.
Moderate profit improvement
Enagás has obtained a profit after tax (BDI) of 2019 million euros in the first quarter of 103,9. This digit is 0,2% higher than the same period of the year previous. Where it is evident that the result registered in the first quarter of 2019 is in line with the objectives established for the year as a whole and is mainly due to the good performance of the contribution of the investee companies, which is situated in the environment 25% of the BDI, and the exhaustive control of operating and financial expenses.
Regarding the demand for gas, it must be verified in this regard that the consumption of natural gas in Spain increased by 2,4% in the first quarter compared to the same period of the previous year. Industrial demand, which accounted for about 55% of the total demand for natural gas during the first quarter, continues its good evolution and grew by 4,9%. In other words, so far this year, the total demand for natural gas is growing by 3,9% and the increase in demand for the industrial sector stands at 4,4%. Results that a priori cannot be considered negative.