So that the technical aspect of Sniace has improved significantly in recent weeks, one of these signs has been that it has managed to overcome the last decreasing highs. So that in this way, the last downward stretch since the drilling of 0,085 euros per share. In a value that offers great doubts to small and medium investors about the viability of their line of business. To the point that it has led to the valuation of their prices having been put at minimum levels.
In any case, as regards the short term, one of the keys lies in the fact that it will be able to overcome the resistance it currently has at the levels of 0,075 euros. Since in case of exceeding there is no doubt that it would have free way up to about 0,09 euros and even with the possibility of going higher in their prices. In what could be considered as a rebound that can have a lot of consistency from now on.
While on the other hand, it must be emphasized that another data that invites hope is derived from MACD. And that after many years is giving an important buy signal if the aforementioned levels are exceeded. With which it could change its trend, although for the moment only in the short term. Since below the minimum of 0,065 euros it would mean a new downward pull until it meets its next support. With a volatility in the configuration of its prices that is one of its main common denominators.
Sniace: a security with a lot of risk
In any case, this is a company that offers more risks than necessary in the operations carried out. To the point that it can give some other negative surprise from these precise moments. Because it is immersed in a very complex business situation in which the possibility that the company can be closed as of now is even contemplated. Not surprisingly, its survival has been due to the implementation of several capital increases in recent years, but without having solved the problem that this company in the industrial sector is going through.
On the other hand, it is a listed company that is at minimum trading levels where the narrowness of its movements makes any kind of operations in the equity markets very complex. Where only users with some degree of learning in this class of values can successfully make their investments, which on the other hand are not guaranteed. Furthermore, it can be said that under no circumstances can it be said that their prices are cheap. Not much less. If not, on the contrary, they depend on many variables from the point of view of technical analysis.
Strategies in operations
As we have mentioned previously, it is very difficult to operate with this specific value. First of all because of its high volatility since in the same trading session its shares can rise or fall by more than 5% with some ease and without affecting its general trend. In this sense, one of the keys to optimizing some of these operations resides in the fact of adjusting the entry prices very well in the security. If it is not in this way, it is better to opt for other securities on the Spanish stock market that are not so complex and have an easier price to operate.
Another aspect that should be assessed from now on is the one that has to do with its little negotiation in the titles. Because in effect, very few titles are exchanged every day and this factor causes their liquidity to be very small. This in practice means that it is much easier to get hooked on value. That is, with a price that is very far from that of your purchase and that it may take a long time until you reach these acquisition levels. Arriving in most cases to carry out very bad operations and with great losses in the movements made. Being one of the big problems that Sniace has for the interests of small and medium investors.
Short-term operations
In any case, this is not a market value to create a stable savings exchange for the medium and especially long term. If not, on the contrary, it is intended for movements in a very short space of time. Via very flexible movements characterized by the fact that they must be settled when possible profits emerge. In any case, you have to be very aware of their prices since there can be strong fluctuations in a few minutes. In this sense, we cannot forget that we are not dealing with a common value, such as those listed in the selective index of Spanish equities, the Ibex 35.
It is also very important to emphasize the fact that their titles do not show a very defined trend as a result of their special characteristics in their price. Only that the bearish tone is beyond doubt in relation to the medium and long term, while on the contrary, it is much more complex in the shorter period, as is what is happening in these weeks. Like its low capitalization and that is one of the biggest drawbacks for taking positions from now on. Something that you should take into account for any type of operation with this value that is part of the Spanish continuous market.
Objectives and achievable price
With regard to its most immediate objectives, everything goes through exceeding 0,1 euros for each share, which means that there is still a very high stretch that must be solved. While on the other hand, it should be noted that despite achieving this level it would continue to be in a very clear downward trend from all points of view. Any operation in this value must be focused on exceeding a few tenths with respect to its purchase price and that will require very few days in permanence since it is not like operating in companies listed on the Ibex 35. From this point of view, little more needs to be said from the point of view of technical analysis.
Sniace, on the other hand, should be on the sidelines of the operations of small and medium investors since there are other securities in the equity markets that better fulfill these functions. Not in vain, the equation between profitability and risk it is not the best of all for the interests of the stock users themselves. Where there is no doubt that you have much more to lose than gain by carrying out any type of operation at this time. The only positive data is that the MACD has improved significantly since it has crossed upwards and may indicate that its price may grow in the coming days.
On the other hand, it is also necessary to count on their shares to stop trading on the financial markets, as has happened in the past. And in which case, you would lose all the investments you have made with all the effects that this movement has. Being one of the most relevant risks that this value has at the moment and those that other listed companies lack. Not surprisingly, it is one of the most aggressive values you can count on, among other reasons for the weak prices at which it is listed. That is, below 0,1 euros per share and where there is no doubt that anything can happen, even its disappearance in the equity markets.
Last quarter results
The total turnover has been increased by 26%, compared to the same period of the previous year, with a similar increase in all its segments. Ebitda improved by 18% with respect to the same period of the previous year. The result for the year has decreased compared to the previous year, although the 2018 results included the reversal of the impairment of cogeneration assets for an amount of 8,3 million euros.
While on the other hand, Sniace has sold all of its dissolving pulp production in the third quarter of the year. In line with the trend of previous months, demand is being affected by cuts in production at the viscose fiber factories, which have been operating with negative sales margins since the end of last year. The situation of excess supply of dissolving pulp and the price differential with paper pulp continue to push prices down. In this context, there have been notable price drops in the third quarter of the year and stops have been announced at some dissolving pulp producers due to losses. A similar scenario is expected for the last quarter of 2019.