Ercros an uptrend opportunity

Ercros is one of the small and mid-capitalization securities with the highest volume of contracts due to the fact that it is one of the preferred by the most speculative investors. Where they try to make profitable their savings in a very short space of time, although it is not always achieved due to the great volatility of their shares. It is very common to see how their securities appreciate or depreciate with great intensity and in all cases above the most stable values ​​in the selective index of the variable income of our country, the Ibex 35. With levels that with some ease are they can approach 5%.

In any case, Ercros is making the news in these first weeks of the year because it seems that it has taken an upward momentum that may lead to more demanding prices than those shown at the moment. Because we cannot forget that now the price of this company has taken a break from the previous increases in recent weeks. But what is more important, without altering its growing upward structure in the medium and especially long term. Despite the fact that its contracting volume has been reduced considerably, which may reduce the strength of its subsequent increases in the price.

In either case, it is one of the values with higher risk in operations in the national continuous market. Because any mistake in taking positions can mean that you leave a lot of euros on the road. Traditionally it has not been a stable value, but on the contrary it has suffered excessive fluctuations in its price in recent years, as can be seen in its technical analysis. Where any pull in the trend, one way or another, can lead to very explosive situations. As it is a title that moves very easily with a very small volume of recruitment.

Ercros: first goal at 3 euros

Its price at the moment is close to 2,75 euros for each share and with a priority objective to reach 3 euros in a not excessively dense period of time. After starting a very clear uptrend since form soil at 1,60 euros. But it cannot be forgotten that this value was trading above 10 euros shortly before the economic crisis that unfolded in 2008. To have a very vertical drop that has even led it to trade very close to one euro unit and after develop a very pronounced downtrend. In other words, small and medium-sized investors have left a lot of money in their positions and that it is going to cost them a lot to recover it, and if they ever get it.

While on the other hand, its purely speculative component must also be valued since it is the object of temporary purchases. No intention of permanence or to form a more or less stable savings bank for the next few years. On the other hand, it is characterized in that it does not offer or distribute dividends among its shareholders and this fact causes movements in the stock market to last for a very short time, unlike what happens with the securities integrated in the Ibex 35. With very short operations and with desires to liquidate them in very short periods of time that encourage much speculation in this special value.

It ranges between 2 and 4 euros

The normal thing is that the price of its shares moves between these intermediation margins. Although always keeping in mind that at the end of 2018 it was priced very close to 5 euros, which is its maximum price in the last ten years. And in any case, as one of its most relevant objectives for the coming years. In which case, it would have a potential of revaluation close to 50%. As an investment strategy that can be considered aggressive, but that can represent a real business opportunity to make the capital available on the stock market of our country profitable. It is also true that due to its current trend it is more likely that it could go up than down in the coming days.

On the other hand, it is no less true that their movements are more arratic than in other stocks. Because they occur with large fluctuations in their prices and that encourage the closing of positions in very short periods of time. In any case, Ercros' shares are moving with very few titles, which can reduce credibility in the movements that this company is developing. As well as because it is present in the investment portfolio of some financial intermediaries who trust the evolution of this stock market value. As one of its most relevant common denominators that it has presented for several years.

Investment strategies

Small and medium investors can take positions moderately to hope that it can reach 3 euros during this first semester of the current year. While on the other hand, it must be valued that Ercros is a company whose business results are not entirely satisfactory for agents in the investment sector. From this approach, another of the strategies that can be taken at this precise moment is the one linked to exceeding these levels in their prices. On the other hand, it can also be expected that its price approaches levels in the two euros to open positions and have more potential for revaluation to optimize operations.

In all cases, it must be operations of very short duration and if you wait for more to take place, revalue due to the risk of these movements. Not surprisingly, this value is characterized by the continuous trend with regard to the short term. Where you can lose many euros on the way without investments do not stop on time, as one of the keys to get out alive in the attempt to trade with this value of the variable income of our country. Not surprisingly, it is different in its mechanics from the companies that are listed in the selective index, the Ibex 35.

Value characteristics

Ercros is not an easy security to operate and much less to develop a simple investment strategy and with certain guarantees of success. Because at the end of the day it moves with a very low trading volume in all trading sessions. For this reason, it is very complex to adjust both entry and exit prices. With a very well defined profile by small and medium investors, where the importance of obtaining capital gains quickly to the detriment of the safety of operations. With a marked speculative accent that makes the movements very tight.

On the other hand, it cannot be forgotten that Ercros is currently maintaining a moderately upward trend that stock market users can take advantage of to make their savings profitable from now on. Without being able to minimize volatility in the configuration of their prices. Not surprisingly, it is in one of the key moments to go one way or another, when moving between 2 and 3 euros for each share. We will have to wait until it can exceed any of these levels and take positions, either up or down, in this case through the so-called reverse products or credit sales. Anyway, it can be one of the values ​​to have it on the radar in the coming weeks, in case it is the opportune moment to open positions for a very short period of time. And of course, with great caution in the movements taken this year.

Sustainability policies

Ercros, as a manufacturer and marketer of chemical and pharmaceutical products, develops its activity applying criteria of sustainability and social responsibility, and considers that the safety and health of people, the protection of the environmental environment in which it carries out its activities and the satisfaction of its clients within the framework of product protection are basic principles of its management, in accordance with the Responsible Care program to which it has been a member since 1994.

To fulfill this commitment, Ercros bases its sustainability policy on the following principles:

Comply at all times with the legal requirements applicable to each workplace on occupational health and safety, the environment and product quality. Likewise, comply with the voluntary agreements to which the company or its centers adhere, within the framework of the Responsible Care program, as well as with any other requirement applicable to each center in these matters.

Continuously improve the behavior related to the prevention of occupational risks, the environment and quality, to optimize the efficiency of our facilities in these matters.

To establish objectives that are developed in goals and programs, providing the means to achieve them.

Maintain a documented management system that is based on interrelated processes, which is integrated into the general management of the company as a differentiating element.


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