Eurona Wireless Telecom (EWT), is a Spanish multinational telecommunications company that offers new generation broadband access services, and brings high-speed Internet where others do not reach, using wireless technologies and satellite. The multinational, which is listed on the Alternative Stock Market (MAB) since 2010, it is one of the great disappointments for investors since in a few years it has gone from trading 4 euros a share to 0,80 at the moment. As a consequence of this action in the stock markets, there is no doubt that its shareholders have lost a lot of money in this period.
The fact that Eurona shares are already below one euro unit is increasing the selling pressure about their actions. It is a good number of small and medium companies that are closing positions in this value during the last three years. Even with strong handicaps in their positions as they fear that things could get worse from now on. To the point that it is one of the equity values that have fallen the most in recent times. With a collapse in its price close to 90%, something very unusual among national values.
On the other hand, when Eurona shares were trading above 2 euros, it was very feasible that it could reach levels very close to its all-time highs. In tone at four euros and that for many stock market analysts was their target price. Now it has been seen that this approach was not real and it has happened that little by little their shares have been losing value in the financial markets. To the point that there are already many retailers who distrust this small value that is in a marked and already long downtrend.
Eurona: guarantee debts
Fearing its own shareholders, its shareholders meeting was held a few weeks ago in which the agreement to provide sufficient liquidity and guarantees the sustainable growth of the group in the next four years. But this fact has not produced any effect on the evolution of its price in the markets. If not quite the opposite, it has continued to fall with great force and with hardly any rebounds of any consideration. A factor that is alarming financial analysts who in all cases recommend abandoning positions in this new technology company.
Well, this extraordinary Meeting, which has brought together shareholders with 53,79% of the capital stock with voting rights, has approved all the items on the agenda. Thus, it has ratified the Hold Agreement or Lock-up Agreement, why the debt affected by restructuring It will be subject to a five-year principal and interest wait from its maturity date. Now it will be necessary to check if the telecommunications operator really achieves its goals in the short or medium term and a certain recovery in which prices can begin with respect to this moment.
They hope to achieve their goals
With regard to this Eurona shareholders' meeting, it turns out that Eurona's CEO, Fernando Ojeda, has tried to calm the financial markets. By showing that “these strategic advances will be key to the progression of EBITDA, which we are confident will reach 20,2 million euros in 2022 as a result of the improvement in the gross margin, the optimization of our overhead costs and the implementation of improvements ”. At the moment, the markets have not paid much attention to him and his shares continue to fall strongly and with no options to recover, at least in the short term.
From this general scenario, the Spanish multinational telecommunications company has launched a platform for the development of mobile applications, which will allow the tourism and retail sector collect data on the particularities of its customers and improve the shopping experience with a system of direct recommendations based on their sociodemographic profile and their latest shopping preferences. It is, in any case, a new commercial strategy to try that the company can change, at least from the stock market point of view. Something that remains to be seen, according to some relevant analysts of the financial markets.
Are your shares cheap?
Given the low prices of Eurona shares, it is completely normal for investors to wonder if their prices are cheap. With the main desire to take advantage of these prices and make your money profitable in a not excessively long period of time. Although it is necessary to have that the profile that the investors of this listed company have had has been clearly speculative. With the desire to make their positions profitable in very few trading sessions. But unfortunately for them, they have encountered the opposite effect. It is none other than your actions they have not stopped going down since 2014. In other words, four years is not a favorable situation for your interests in the investment sector.
On the other hand, it should be noted that until recover the level of the two euros per share will not have given a clear signal that the worst is over. And this is a level in its prices that it is currently very far from, since it would have to recover nothing less than a little more than one euro in its price. Something very unlikely to happen in the next year. Despite the hopeful words of its managers. In any case, it is a reality that small and medium-sized companies that are still positioned in value have to get used to.
Risk of deepening your falls
On the contrary, the scenario is not rosy at the moment and there is a real risk that their actions may continue. losing more value over the next few months. Of course, a scenario that is present and investors must assess it correctly to develop any kind of investment strategy. A very complex decision to make due to the special characteristics that this special value presents in these trading days. Not surprisingly, it may get worse in the coming months, as a good number of financial analysts bet.
If this were this way, there is no doubt that it could be a disastrous operation for small and medium investors. With the risk of losing a very important part of the invested capital. This is one of the reasons why you have to be prudent with this value so special. It is only valid in speculative operations and provided that the user has a high level of learning in this class of values. Not surprisingly, it can be said that he has more to lose than to gain. And therefore it is not what a profitable value says, despite just a few years ago its shares were trading at levels of 4 euros.
Tips for trading with Eurona
If, despite everything, your decision is to invest part of your savings in this Spanish telecommunications company that offers broadband access services, you will have no choice but to take advantage of a series of recommendations that will be very useful to you. Not only to make operations profitable, but to provide you with greater guarantees in any investment strategy. And among which the following stand out that we expose you below:
- Dedicate a part of your savings that is minimal for contain risks of this complex operation in the stock market and that can make you lose much more money than you think from the beginning.
- You must respect the entrance areas in order to stay hooked on value. Since in all probability it will cost you a lot for the prices to reach the level made in your purchases. As has happened to many small and medium investors in recent years.
- Do not plan movements in the medium and long term since in the end this operation will pay dearly. Your strategy should be aimed at achieving capital gains as as fast as possible and without paying attention to other procedures in the investment. This system is best left to other values of Spanish equities.
- You cannot forget that this Spanish telecommunications company is one of those that are in a bearish channel. And of course that is very difficult to obtain any kind of benefits. If not rather the opposite, as you can detect in the evolution of their prices in the stock market.
- Its most relevant attraction is based on expectations that is creating this listed company and not in the business results that it is offering up to now. As long as this dynamic does not change, it will be better if you absent yourself from taking positions in it. Surely your personal accounting will thank you very soon.
- Take into account that in national equities there are a lot of values as to make any kind of investments. From this perspective, it does not make sense to focus on operations with this listed price. Because you can choose any kind of security in the continuous market.