The variable income is not static, but on the contrary it is continually renewed and to the point that new values appear so that they can be subscribed by small and medium investors. While on the other hand, the national selective index, the Ibex 35, also it is renewed every year with the entry and exit of new securities that is determined based on their respective trading volumes. And that they can give you the odd signal about where your operations in the stock market are going to be directed.
In this last part of the year, the most relevant movement is the entry into the Ibex 35 of the teleco More Mobile which in recent months has been one of the most active national equities. With an annual revaluation that has been around 30%, being one of the most profitable proposals for all small and medium investors. In a sector, in which until now only Telefónica was present, which is precisely not going through one of its best moments. As it is trading very close to the levels of 7 euros per share, one of the lowest in recent years.
While on the other hand, these changes not only affect the Ibex 5, but other secondary indices, like for example the MAB. With the entry of values that are very unknown to a good part of the small and medium investors. Well, these are companies that have never been listed on the financial markets and with a very short history in the business sector. In this way, it is much more complex to make a decision since there are no important parameters to carry out a valuation and comparison of the new securities that are going to be listed.
Incorporations in the Madrid Stock Exchange
The Madrid Stock Exchange is being one of the most active in terms of new entries to be listed on the equity markets. In this sense, it should be remembered that the Management Committee of the General Index of the Madrid Stock Exchange (IGBM) has decided in its ordinary index review meeting that both the IGBM and the Total Index will be made up of 125 listed companies in the second semester of the year, after the losses of Telepizza and Hispania. They are two companies that you will no longer be able to operate in because they are no longer in any stock index.
The two companies cause the index to drop due to takeovers. Hispania was delisted from the Stock Market on April 17, 2019, after the Public Offering of Acquisition (OPA) carried out by Alzette Investment, while Telepizza will be delisted from listing as a result of the takeover bid of its shares formulated by Tasty Bidco, and after the approval at the general meeting on June 17 of the delisting of the shares from trading on the Stock Market. In the first case, it is one of the values that had the support of a good part of the small and medium investors, and with a volume of contracts that should be classified as moderately acceptable.
Strategies to carry out
There is a strategy that almost never fails in the wishes of small and medium investors and that is based on carrying out operations in companies that start trading on the Ibex 35. Not surprisingly, their first reaction is usually strongly bullish. With a succession of rises in the equity markets which makes them very profitable for savers' operations. In the past few months, returns of around 20% have been generated and one of the best-known examples is when Ence started trading on the selective index of Spanish equities. With a strong buying pressure on the seller that makes the hikes its dominant note.
While on the other hand, it is also necessary to influence the opposite effect. That is to say, the values that at the end come out of the Ibex 35 usually depreciate in the stock market and sometimes with great intensity. As a consequence of the lower interest on the part of investors who decide to focus on another series of stocks. To the point that some of these proposals in the financial markets over time lose half of their valuation. With important crashes that can cause you some other problem with your securities account since you can leave many euros on the way.
Quick operations with these values
Before channeling a purchase or sale order, it is highly advisable to read its content carefully and make sure that all the aspects that you wish to incorporate have been correctly collected: price, volume, term, etc. As well as that it has the necessary titles or cash. Likewise, you must inform yourself about the conditions and cases of revocation of the securities orders in advance. This will grant you a greater capacity for action if necessary, especially in operations carried out during the same trading session.
Another point that you should bear in mind is that operations in foreign securities markets may present certain peculiarities with respect to the national one. To do this, you must inform yourself before giving an order of the characteristics of these markets, the implications in tax matters and the amount of the commissions associated with the operation. Not surprisingly, one of the main characteristics of these values is its little liquidity and therefore you will have more difficulties to adjust the entry and exit prices. With the obvious risk of bad operations in equities.
Look at oscillators and indicators
All the oscillators and indicators serve so that at a given moment the small and medium investor detect how the value is actually found. Generally the diagnosis of both tools is the same, there is rarely a divergence between any of them. Being very reliable, the ideal scenario to design a purchase would consist of selecting those stocks that are in a clearly bullish situation, but also enhanced by an excessive oversold situation. These parameters can serve as important tools for exiting and entering the respective equity markets.
On the contrary, to start a sell operation, it would be necessary to do the opposite, that is, it is in a bearish channel and is overbought. In principle, it is valid for any type of stock exchange: intraday, speculative or medium term. The only thing to anticipate is that it is accompanied by a fundamental analysis favorable to avoid any surprises that have to do with the business status of the company. A little trick to carry out trades in the stock market lies in the fact of developing a comparison between the technical and the fundamental analysis. It rarely fails and can provide you with a very important source of information to make decisions from now on.
Choice based on deadlines
Not all securities are indicated for the same terms, but there are some more likely to invest them at certain periods. As a consequence, those values with strongly speculative component are intended for shorter terms. Others, on the contrary, need an intermediate period so that they can reap the possible benefits that are pursued. This is very important to carry out any investment strategy and even limits the fact that you can make mistakes in your operations on the stock market.
Finally, there are the values that need more time to achieve the objectives set. These are values of defensive cut such as those represented by sectors such as banking, electricity or others of a defensive nature. In any of the cases, these terms can be modified depending on the evolution in the price of the security in question, and as the investment term is shorter, the more it will need the attention of the small investor. As you have seen, there are values that are especially suitable for a different period of stay.
Changes in the Alternative Market
On the other hand, the MAB board of directors has approved the incorporation of the company Millennium Hotels after analyzing the information presented by the company and once the favorable evaluation report of the Coordination and Incorporations Committee has been issued. It should be remembered that the company closed on June 20 a capital increase in which 34.797.200 shares have been subscribed among more than 400 investors with a total cash of 174 million.
The company's board of directors has set a reference value for each of its shares of 5 euros, which represents a total value of the company of 250 million euros. The MAB Board of Directors has approved the incorporation of the company Trivium after analyzing the information presented by the company and once the favorable evaluation report of the Coordination and Incorporations Committee has been issued. The beginning of the negotiation of the company, the sixth company to join the MAB this year, will take place in the coming weeks. As you have seen, there are values that are especially suitable for a different period of stay.