Undoubtedly, one of the values that is arousing the greatest expectations among small and medium-sized investors is the Spanish oil company Repsol. It shows always very active in the formation of their prices. Above other companies listed in the national selective index such as the Ibex 35. Among them, the large banks and electricity companies that move many titles in all trading sessions. Although in this case, with a characteristic as special as its strong link with the price of crude. To the point that it is the origin of almost all his movements.
In any case, the evolution of Repsol shares is currently moving under strong losses in its price. As a result of an upward trend that has lasted many months and that has led it to exceed levels as relevant as 18 euros per share. From this general scenario, it cannot be ruled out that after the recent cuts in its prices, it will shortly take a new upward momentum that will take it to levels close to 17 euros per share. Your latest strategies for developing your lines of business may pay off in a rather short time.
In any case, it is a very volatile Spanish selective index security. Where there are many differences between the maximum and minimum prices of the same trading session. But even in spite of this important incidence it has risen 30% during the last months. A significantly higher percentage than that generated by other listed companies of some relevance. Where the risks involved in their operations are greater, but with a reward that is very favorable to your interests. Among other reasons, because its rise is more vertical than in other values.
Repsol is trading at 15 euros
The current price of the shares of the national oil company is slightly above 15 euros. After showing an annual variation above 17%. After having reached a maximum price in this period around the $16. It is for this reason that the cuts that it is suffering at the moment are from all logical points of view. In this sense, you do not have to fear for your open positions. As long as it does not violate any support of special relevance, you will not have to fear anything for your investment portfolio. Although it is depreciating during these days or weeks.
Repsol, on the other hand, has a 4,8% dividend yield. Not as high as in other values of the Ibex 35 (telecommunications, electricity, gas companies, etc.), but if you want to look at this alternative in the equities of Spain. Because in this way, you are in a position to create a fixed income within the variable. That will generate that every year you have a fixed and guaranteed income. Above the profitability offered at this time by banking products (fixed-term deposits, high-income accounts or even savings programs). Where margins above 1% are rarely exceeded. As a consequence of the cheaper price of money.
Improve your business accounts
Another aspect that you cannot forget from this moment on is that Repsol has very solid results. Because in effect, the Spanish oil company has generated during the last quarter a net profit of 1.583 million euros in the first nine months of the year. Or what is the same, 41,3% more than in the same period of 2016, according to the results delivered to the National Securities Market Commission (CNMV). Where the gross operating profit was 4.715 million euros in the first nine months of the year, 32,5% more than in the same period of the previous year. Results that in short have been very much to the liking of the financial markets.
On the other hand, it is also noteworthy that Repsol is taking advantage of prices in the black gold quote. As well as the good expectations with which the sector is listed. In another vein, it is also worth mentioning that its less dependence on other Spanish companies. To the point that it is enjoying greater business and financial autonomy. Something that can help you show a better accountant from now on. And that will help you make your capital profitable with better expectations of revaluation.
The price of a barrel in the 51 dollars
Not of less importance is the price that black gold is setting in the financial markets. Well, in this regard it is very important to note that during the first nine months of the year, Brent crude traded at an average of $ 51,8 per barrel. However, at other times of the year it has become very close to the important levels of $ 60. Something that is helping Repsol to build up its positions in the equity market.
Anyway, it's in the refining, chemical and downstream, where the company led by Antonio Brufau is mostly pinning its hopes. Not surprisingly, you have a company cash generator that can be very beneficial for your business accounts starting next year. A factor that undoubtedly can give a new to the prices of the national oil company. From this scenario presented by Repsol, it is not at all out of the question that it could reach more demanding levels in the coming days.
Tensions in Saudi Arabia
The political events that are unfolding in the Arabian Peninsula of course they are very important for security in the area. But they can benefit the interests of Repsol to climb positions in the quotation of its prices. As a consequence of the escalation in the valuation of black gold. Not surprisingly, it may end up affecting other countries in this troubled region of the world. Even without ruling out that a barrel of oil can reach prices very close to $ 90. Something that would benefit the expectations of this national benchmark oil company.
The tension between Iran and the Riyadh monarchy is a factor that can play in favor of the interests of the Spanish oil company. Because a tension can be generated in the area that drives the price of black gold in the financial markets. Depending on the intensity of these movements on a highly flammable geographic board. As has happened in some moments of history. Not in vain, a price of oil above $ 70 per barrel it may cost several euros in the price of Repsol shares. With what you would be in a position to generate large capital gains on your investments if you have open positions in the security.
Movements in shares
Either way, you always have a series of strategies available to get out of being invested in this energy company. Because you cannot forget that price volatility is one of the most common in equity markets. To avoid unwanted situations, it will be highly advisable that you follow some very useful tips at this time. As for example, the following that we expose you below.
- Overcoming the important resistance at 16 euros the action should mark a very clear entry level. At least for how to carry out an operation of not much economic amount.
- If you want to take positions in this value, you must analyze the evolution of black gold in the markets. To run it with greater security and avoid some other problem in its resolution.
- The positive aspect for your interests that Repsol shares at the moment are not in a downtrend. But on the contrary, they are in a process of correction in their assessment.
- El upside potential In the medium and long term, its shares may be more powerful than in other stocks. Although for this it must be accompanied by a price escalation in the price of a barrel of oil.
- Contemplating more risks the operation you will have no choice but to increase the precautionary measures. Both with the entry levels and applying an order to limit losses in the materialization of sales.
- You may not have realized it, but Repsol is the only national alternative that you have in this very specific sector. If you go to international markets, the offer will increase considerably and you can even choose which is the listed company that best suits your interests.
- If things go wrong you will always have the resource that it has a very strong support at levels close to the 10 euros per share. Although very far from the current positions that will prevent you from greater protection in the positions taken so far.
- Another of the most useful tips lies in the fact that Repsol is a company backed by the interests of the State. Being a very important strategic sector for Spain. In this sense, you should have some confidence when investing part of your capital.