There is no doubt that Bank does not stop giving surprises. When the purchase of the popular Bank by Santander for a single euro, now it is the turn of one of the large financial groups such as Bankia. Although the results are not as dramatic for small and medium investors as in the previous case. A sector like banking that does not stop giving surprises, in one sense or another. Conforming as one of the most active sectors of the national and international stock exchanges.
Well, Bankia has announced that it has signed with BMN for which it will absorb this entity by delivering 205,6 million new Bankia shares to its shareholders, which means valuing BMN at 825 million euros, that is, 0,41 times its book value. In a way, it was news that was expected, both in the financial markets and in the investors themselves. To the point that it was a rumor that circulated in the national stock markets. Until finally the news has been confirmed
“The operation is very good for all Bankia shareholders because of what it means to create value. And it is very positive for taxpayers because the union of both entities increases the ability to repay the aid received, "said Goirigolzarri. In any case, operations in the listed company have increased. In any case, this decision is not final since it is foreseen that this merger project is submitted to the respective general shareholders' meetings from BMN and Bankia for approval. It will be foreseeable in the coming weeks when these meetings of both banks take place.
Bankia moves token in the sector
Behind this news is the reorganization of the national banking sector. You cannot forget that fewer and fewer financial entities operate throughout the Spanish geography. And precisely Bankia is one of the reference actors of this process. Behind the two large Spanish banks: Santander and BBVA. From this scenario presented by the sector, a step forward from Bankia was to be expected. And in fact it has materialized under conditions that are becoming known during these days of a very hectic summer.
The effect it may have on Bankia is similar to that generated by other financial entities. That is, with a series of doubts in the shortest term to later stabilize in the middle and long. In any case, there are several analysis companies that consider that this will be a very positive operation for the old Madrid financial group. Not surprisingly, it could develop an upward escalation that would take it to between one or two euros above its current price.
Above 4 euros per share
Bankia's reaction in the financial markets could not have been more positive. Because in effect, their prices have been boosted more than 3,5% in equities, after announcing the agreement with Banco Mare Nostrum (BMN) to undertake its merger, for which it values the entity at 825 million euros. Specifically, the entity chaired by José Ignacio Goirigolzarri has finally managed to overcome the resistance it had at four euros. To finally trade at 4,17 euros per share, at the close of the trading session.
In any case, there is no shortage of predictions that bet that he will be able to overcome the psychological barrier of five euros it is a not excessively long period of time. If this scenario is fulfilled, there is no doubt that it will be a real buying opportunity for the next few months. As one of the clearest alternatives to make the savings profitable with greater security. However, a correction in prices cannot be ruled out in the shortest term. Which would be taken as an excellent level to open positions in one of the hottest values on the Spanish stock market.
A very profitable value in 2017
Bankia has undoubtedly become one of the stock market proposals that is generating the best profitability in this period. To the point that their shares have risen by 15%, ahead of many of the most relevant values of national equities. Although its maximums have been a few months ago above current levels. Specifically, testing the support close to 4,50 euros per share.
In any case, one of the common denominators of its price in recent weeks has been the notable increase in its contracting volume. A factor that may be announcing a new bullish segment from now on. However, the state of its technical analysis seems to indicate that we are witnessing a consolidation movement. With a period that could last a couple of months before opting for the upward or downward trend.
At the moment, Bankia's position within the banking sector is the third largest banking group in the country. Position shared with La Caixa and behind only the big heavyweights of national banking: BBVA and Santander. And ahead of all the rest, both listed and not. Because indeed, it cannot be forgotten that after its public rescue it has been one of the groups that has grown the most in recent years.
What can be expected now?
Many small and medium investors may think that it is too late to enter their positions. After the strong revaluations in their prices. It is true that at the moment its price is less attractive than a few months ago. But it still has growth potential, at least in the medium term. Where the best possible strategy lies in take advantage of specific corrections who will suffer to enter their positions with force. Not surprisingly, there are high possibilities to make profitable operations with particular success.
The levels of five euros it is true that they are very close, but do not be obsessed with achieving this goal in the very short term. To the point that it can create a bit of anxiety for small and medium investors. This value is more suitable for denser terms, as is the case with the entire banking sector. Despite the fact that in recent months it has developed a perfectly flawless uptrend and that has led to the savings being able to make a lot of money in their open positions.
Another strategy that you can use from now on is to combine this purchase with those of other shares on the Spanish stock market. With no other objective than to diversify your investments so that in this way your money is more protected against the most adverse scenarios in international equities. Creating a basket of shares in which the most relevant sectors of the business fabric of Spain are represented. If you follow these tips, you can better minimize the dangers that may arise from now on.
Tips for taking positions
If you want to optimize the operations carried out in this financial institution, you will have no choice but to apply some simple guidelines for action. It will not be a sign that you will achieve the objectives, but at least it will help you a lot to reach the desired goal. Basically they would be based on the following stock market approaches.
- If you do not want to pay such expensive prices, you can wait for them to occur corrections to make acquisitions much more profitable. Even raising its appreciation potential.
- It is not necessary that you make large purchases, but it will be enough that you allocate only a part of your savings. It will be an effective precautionary measure for the future.
- In all cases, it will be very effective for you to consider some minimum objectives and also a period of permanence that you can afford.
- Try to make purchases of these actions near the supports and not on the resistors. It is a small one that will come in handy to make operations profitable. With very satisfactory results for your own interests.
- You must be very aware of the weekly closings since any growth or decrease in its price will be giving you more than one clue about what you have to do.
- There is no better investment strategy than to take advantage of a sharp rise to undo the positions in the financial markets. So that in this way, you can enjoy your well-deserved capital gains.
- It is also very practical that you wait a few days to see how the evolution of their prices is. So that in this way, you can enter their positions with greater security guarantees and avoid making any kind of mistakes.
- The banking sector is one of the hottest national equities and it is for this same reason it can generate greater volatility in its prices. With very abrupt oscillations that can mislead you at some point or another.
- You have to be very aware that do not break supports of special significance that can drive your stocks to much lower levels. In these cases, the best decision is not to enter the financial markets.