Ence is one of the most active stocks in recent months and a good part of the small and medium investors are pending. For a series of reasons that it is very convenient that you take them into account from now on if you want to have this listed company on the radar during the year 2020. It may have a great potential for revaluation, but also its risks are greater than in other values of Spanish equities. Swerving very violent in the configuration of their prices and that they have come to mislead more than one retailers in their intentions to open positions in the coming days.
This is a security that is characterized above all by its low stability in the prices it sets in the financial markets. To the point where its fluctuations are above 3% from one trading session to another. Therefore, it can be said that this Ence is not a security that is intended for all investor profiles. Because it is not in this way since it requires users who can withstand this great oscillation in the price of their shares. Only the most aggressive are those who have the most learning to carry out operations at all terms of permanence.
While on the other hand, another of the hallmarks of this security is that it is integrated into the benchmark index of national equities, the Ibex 35. After the last review has made the decision to keep it in the selective club of the stock market in Spain. With the entry of new positions in the value you can give strength to reach more ambitious goals these days. This is a fact that has benefited their interests very positively and that you can take advantage of if your investment strategy is aimed at the short term. Where you can make the capital profitable as soon as the Ibex 35 pushes up these days.
Ence: very short operations
This is a value that is valid for operations of short duration since its volatility can play a trick on your portfolio from now on. It is preferable opt for small operations and low amounts that allow better control by small and medium investors. Before risking that bad news could ruin the expectations that this company may have in the medium and especially long term. Not in vain, we are talking about one of the most risky stock values of the entire selective index of the Spanish stock market.
It is very common that it can move around half a euro per share in the same week. Because their reactions are very violent and therefore you must be prepared for these kinds of very special movements. While on the other hand, you cannot forget that this company depends a lot on what can happen in the concession of Ence-Pontevedra. To the point that it is decisive for their shares to rise or fall with great intensity, as has been seen in recent months. With deviations that are greater than 5% in many cases.
Buying pressure
In any case, in recent weeks a selling pressure on the buyer has been detected, which has led to a certain level of overselling. From this point of view, an investment strategy is generated through a selective purchase to make it profitable in a very short space of time. Where when the first objectives are achieved, there will be no choice but to undo the positions to avoid very unwanted situations on the part of minority investors. In what is constituted as one of the options that these will have during the year 2020. That is to say, not very high with respect to their fellow travelers in the selective index of the variable income of our country.
Another system that stock market users can use is based on applying some very important filters to buy the shares under some much tighter prices than before. This is a tactic that offers excellent results in all kinds of investor profiles. But with a precaution that must be taken from now on and that is none other than to carry out a punctual follow-up of all the movements initiated in the equity markets. With a high chance that the desired goals are met at the time of taking positions in this value. Especially if this trend is accompanied by increases in international stock markets and especially in Spain.
With high level of liquidity
Another of his most relevant contributions is that positions can be opened and closed with some ease. Not as in the case of the large values of the Ibex 35, but in order not to get hooked on their positions, as is happening with the small and mid-cap stocks. With a contracting volume which is situated at intermediate levels compared to other bets on Spanish equities. Where it is very important that the investors themselves are aware of the evolution of their titles before the idea that they can make a first contact with this listed company.
On the other hand, another of its hallmarks is the one that refers to a slightly speculative component. Something that is very rare in the securities that make up the Ibex 35 and that are characterized by their great stability to integrate their investment portfolios. This is a factor that we must take into account from now on if we do not want to have some other negative surprise that could lead us to depreciate the value of our investments. Like the fact that he hands out a dividend among its shareholders with an estimated profitability of around 3%. In other words, it is not very high compared to its fellow travelers in the selective index of equities in our country.
While on the other hand, it can be one of the options in 2020 if more risks are assumed in the movements. Not surprisingly, it has a very estimable revaluation potential in the short term, provided that it remains under the defense of its main supports. Since if it is overcome, there will be no choice but to finalize the operation of assuming that we have made a mistake when selecting this value of the national variable income. Although it can come back when prices give their new buying signals.
Technical aspect
Ence is currently pending to overcome the support that the share has at 3,80 euros if it wants to resume the short-term uptrend from now on. After it has fallen back to the levels at 3,40 and 3,50 euros, and in any case with a sequence of decreasing highs that has made it detrimental in its attempts to aspire to more ambitious levels. In this sense, it will be very important what you can do in the next trading sessions, so that you can direct yourself in one direction or another. And in this way, you are in a position to apply an accurate investment strategy.
On the other hand, when it comes to a close above 3,8 euros it will probably give a target in the zone that is slightly above four euros per share. While on the contrary, an unsatisfactory close could take the value towards its support zone that is below 3,40 euros. Another aspect to take into account is that one of its most relevant technical indicators, such as the MACD continues in positive territory. Where another of the points it has in its favor is that its recruitment volume continues to be high, at least more than in previous months.
It remains on the Ibex 35
The Ibex 35 Technical Advisory Committee has decided at its meeting held in December that it has decided to keep Ence on the selective due to its outstanding liquidity, higher than that of the other five companies belonging to the index. The company will continue to be part of the Ibex 35 despite the fall in the stock market price caused by the surprising change in criteria of the General Directorate of Coasts in relation to the extension of the concession of its biofactory in Pontevedra, which has had a strong impact negative on the company's price during 2019. This fall contrasts with its competitors whose prices have risen despite the decrease in the price of pulp.
On the other hand, it is noteworthy that global pulp prices have begun to stabilize and the company has announced that it will defend by all means the extension of the Ence-Pontevedra concession until 2073. Where, the year 2019 has been the first year of execution of Ence's 2019-2023 Strategic Plan, in which the company has invested more than € 100 million to increase cellulose sales at its Navia biofactory by 15%.