Although Grifols' technical scenario was excellent, it is even more so since this week when it entered the free-rise figure. It is the most favorable in the equity markets for investors because it no longer has resistance ahead. To the extent that their actions have a bullish run very high in one of the best options to invest money in the selective market of the Spanish stock market, the Ibex 35. Being one of the hottest values to be the object of the purchase and that in any case can give more than one joy to the stock users.
Within this general context, it should be noted that this company listed at closing prices ended last week marking a new high of all times. Although this scenario was something that had been discounted by the different financial agents. And it was a matter of a short time before this price level could be reached in its quotation, despite the vertigo in the heights that this situation produces in the stock market values that go through these circumstances.
On the other hand, it is necessary to emphasize that it is offering business results that are liked by small and medium investors. To the point that a strong buying pressure well above the selling one has been detected in its technical analysis. And the result is what has happened in these days when it has been on a free climb and with an upward journey without any obstacles. Although it is more or less logical that it can make corrections in the coming days to drain its rises in the financial markets. Something that would be an opportunity to take positions in the value through tighter and more competitive prices.
Grifols in search of 33 euros
The first goal that this company has is right at the level of 33 euros for each share. But this does not mean that I can not progress more from now on. If not, on the contrary, you can go to more ambitious goals in your price and that can make the operation very profitable by moving, for the moment, under a clearly upward trend. In all the terms of permanence, in the short, medium and long and therefore you have more strategies for investment, both in more aggressive user profiles and in those of a defensive or conservative nature.
While on the other hand, it is a class of stock where the risks are not as high as in other proposals. Where the volatility It is not exactly one of its main common denominators since it does not have noteworthy oscillations in most sessions in the financial markets. Beyond the merely technical and that serve to adapt the law of supply and demand in their titles. In one of the bets that the best response is having on the part of small and medium investors.
It trades around 31 euros
At the moment the shares of the company are trying to stay at the levels of 31 euros per share and after reaching the figure of free rise. You will need to take a little rest before undertaking a new hike up to 33 euros and from where it can rise to even more demanding heights. In any case, it is a price that this listed company has never reached and this factor denotes a show of strength in the equity markets. Despite the certain stagnation in the main stock indices around the world. In this sense, it can be said that it is a financial asset that is performing better than the rest that make up the Ibex 35.
It should also be noted that Grifols has been in a good technical situation for several months now and this is a situation that certainly invites us to open positions in the stock. Although corrections may be generated in its price as a consequence of the high level of overbought you have right now. But in any case, it is more to buy than to sell and you can formalize this order with certain guarantees of success from now on. So that in this way you are in a position to make your savings profitable with one of the most solid values of the selective index of Spanish equities.
Pay out a modest dividend
On the contrary, the dividend it distributes among its shareholders is not very striking. By generating an interest rate that is around 3% and that it is not one of the most competitive in the national stock market. In any case, it is a fixed and guaranteed payment that you have every year, no matter what happens in the financial markets. From this point of view, it can be said that it is not an action that you should address to her for this payment on account, but on the contrary for her behavior in the market where her securities are listed. And that is, after all, one of your most immediate goals.
Another aspect to consider from now on is that it comes from a sector that has great potential for revaluation such as pharmacy. With one of the best prospects for the coming years due to the special characteristics of this business segment. Where it is very relevant that it offers an annual return that can be very interesting for small and medium investors. Unlike other very important values in the Ibex 35 that have been stagnant in recent months. Conforming as one of the clearest options you have to create your next investment portfolio. From a more stable business model than others.
Strategies to develop
However, you can push multiple systems into operations to get performance from them. One of them consists of take advantage of any cut in its price to take positions for the medium and especially long term. To create a savings bag little by little and with a longer stay than usual in these cases. As well as making additional purchases at the time of exceeding the level of 33 euros, which is one of the most important levels that is currently ahead. Especially when it is located in the best of the technical figures, which is the free-rise one.
Another strategy that you can use at this time is the one that is based on developing new purchases as they leave. meeting new goals. So that in this way your investment increases over time. As you may have seen, this is not a value for speculative operations, nor for short-term movements. For this, other more suitable stock market proposals are available to give more agility in your investment portfolio. Where you cannot forget that after having lowered equities in 2019, even with a very small intensity, this company can take new impulses in the new year.
Although somehow it was sensed that it was a matter of time before it managed to surpass the level of 31 euros with which it is trading at the moment without many problems. Because their prices offer investors greater stability than the rest and this is another factor that you must assess from now on. While on the other hand, it is one of the values that is having the highest recommendations from the different financial agents. Even from aggressive positions to better monetize the savings of stock market users and that is one of the objectives that must be met. Not surprisingly, a short time ago it was trading below 28 euros per share.
Reduce your debt this year
The new financing comprises a Term Loan B (TLB) tranche for an amount of 2.500 million dollars and 1.360 million euros, both destined to institutional investors; the issuance of a bond for 1.675 million euros (Senior Secured Notes); and the extension of the multi-currency financing facility to an amount of 500 million. This refinancing process makes it possible to optimize the financial structure and significantly improve all conditions. It also allows the company to be given greater flexibility in the conditions of the covenants (cov-lite).
The average cost of debt stands at 2,8%, with a reduction of 80 basis points. In this way, the average maturity term is increased above 7 years. On the other hand, Grifols 'economic performance, together with its solid long-term growth and expansion plans, have made it possible to close this refinancing process in record time, a fact that revalidates investors' confidence in the company. Consequently, Grifols will recognize a positive accounting impact on its Financial Result for the fourth quarter of 2019 for a net amount of approximately 50 million euros.