One of the hottest stocks in Spanish equities these days is without a doubt Mediaset. To the point that the National Securities Market Commission (CNMV) has decided to suspend the listing of Mediaset España after Bloomberg has published that the Italian parent of the group would be studying different options for its Spanish subsidiary. Rumors suggest that a next merge with matrix. This was a rumor that was circulating by word of mouth among small and medium investors and that has been confirmed in the past week.
In this sense, it must be remembered that Mediaset España capitalizes a total of 2.263 million euros in the Ibex 35, so this movement would have a cost of approximately 1.200 million euros. On the other hand, it cannot be forgotten that the stocks are trading with a downward drip that made them very dangerous with the interest in making the operations carried out through this market value profitable. Not surprisingly, its trend configuration was downward in the short and medium term. With all the risks involved in the movements taken from now on.
In any case, Mediaset was not one of the preferred securities for financial intermediaries. If not, on the contrary, the preferences were in the sense of sell your shares above other class of investment strategies. Beyond other considerations of a technical nature and perhaps also from the point of view of its fundamentals. Within one of the most problematic stock market sectors at this precise moment and which has performed worse than the rest within the equity markets, both nationally and outside our borders.
Mediaset: status of your actions
It cannot be said that it is the best possible. Because indeed, it cannot be forgotten that Mediaset España shows a downward trickle in income that has already accumulated three consecutive quarters. In this sense, its sectoral consolidation could have some solution through this corporate movement that would be driven mainly to reinforce its contents. With the acquisition of new shares in other divisions within this communication group. In this sense, it would really make sense and could even benefit the interests of small and medium investors.
While on the other hand, it cannot be forgotten that this very special value of the equity markets has a certain cyclical component. That is, it behaves better in expansive business cycles, while in recessive periods it has a worse performance than in the rest of the stock market. With a divergence that must be considered as very wide and with a difference in which many thousands and thousands of euros are played. It is something that you must take into account when taking positions in this proposal offered by the selective index of national equities, the Ibex 35.
10% dividend yield
Another aspect that stands out in Mediaset is that it is the stock market value that offers the best dividend to its shareholders. With a fixed and annual profitability around 10% and to which other values on the Spanish stock market do not reach, not even the electricity companies. It is one of the greatest incentives to take positions in this stock due to the high returns it offers on the savings provided. Where for an average investment of 100.000 euros, a return on savings of approximately 10.000 euros can be achieved. Or what is the same, a strategy to create a portfolio of fixed income within the variable.
This means that all the company's profits go to investors. Although with caution that must be taken in this kind of investment proposals so aggressive from all points of view. Where volatility is configured as one of its most relevant common denominators and in any case above the other values of Spanish equities. Not surprisingly, the next value that offers a better dividend yield is electric Endesa with a remuneration close to 7%.
The key is to exceed 7 euros
In any case, the key to developing the odd entry strategy is for the price of its shares to overcome the resistance it currently has at levels of 7 euros per share. It is true that at the moment it is very close to this objective, but due to its high volatility, anything can happen. Even that it is heading to the bottom of its bearish channel and it could take you to trade around 5,50 euros. That is, you can lose a lot of money if you open positions early. Therefore, the best thing you can do from now on is to wait to see what its evolution is in the financial markets.
It is one of the worst-performing stocks in the last twelve months and it can certainly be said that it has not been profitable for the interests of small and medium-sized investors. Not much less despite the expectations they had set many of them at the beginning of the year. It is not a comfortable value to have in the investment portfolio. If not, on the contrary, it is more desirable to carry out specific operations and especially for very short periods of time. Despite its high dividend yield.
A sector that offers many doubts
Another of the doubts that the different stock market agents have is that Mediaset is within a stock market sector that generates many doubts. Like the one on television because it has become stagnant before the appearance of new specific channels and the fact that it has lost audience among the youngest. Sector that opts for other alternatives in this means of communication and in this way the equity markets would be picking up this scenario in the conformation of their prices. With a drop in its valuation in recent years and which is extended to other securities in the same sector and with very similar characteristics.
Within this general scenario, its prospects are not good at all and it is closer to depreciating even more than to rising in its share price. This actually means that you have much more to lose than to pay. Where it is very possible that you can leave a lot of euros along the way from now on if you decide to open positions in this very special value of Spanish equities. The risks are there And it is not convenient that you do not take them into account so that you cannot have some other negative surprises from these precise moments.
Is in clear reversal
On the other hand, you must bear in mind that its moment of splendor in the stock market seems to have passed away. This is observed through a detailed analysis of its evolution in recent years. In addition, it would be one of the values most affected by a new recession in the national and international economy. This is because it would affect a decrease in advertising that is its main source of income. As has happened recently with the economic crisis that was developed from 2008 and where it was one of the values most punished by the financial markets. To the point of resembling an eminently cyclical value in its behavior.
Another aspect that should be assessed in the study of this value is that which refers to its dependence on consumption. Because this reason is the one that causes that there is more or less advertising on your television grill. By not having other sources of income of special relevance and that can undoubtedly weigh down the value in its listing on the stock market. You cannot underestimate this important aspect as it may give you the odd surprise from now on. In a general context, where the selling pressure is stronger than the buyer despite the interest it may arouse due to the high dividend distributed among shareholders.
For these reasons, Mediaser at the moment is more to sell than to buy and if you are going to take positions it is through very fast movements where you can profit from the possible rises that could develop from now on. You will always have better options to achieve your most immediate goals, which are none other than ending the year with a positive balance in your investment portfolio. Which is at the end of the day what it is about at the moment and that not in all cases it is achieved in a satisfactory way for your personal interests.