There is no doubt that Telefónica is one of the securities with the largest operations in the market of the entire selective index of Spanish equities, the Ibex 35. Where the interest on the part of investors towards this benchmark teleco is evident in the international arena. Where at the moment it is struggling to overcome the important resistance it has in the 7 euros the action and on which its evolution will depend from now on. After having traded for much of this summer below 6 euros. Levels that had never been and that has led to disappointment by small and medium investors.
On the other hand, it should be noted that this telecommunications company is one of the companies that moves the most titles in all trading sessions. With figures only within the reach of very high capitalization values and that makes it very liquid. That is, the entry and exit prices of the positions can be adjusted and therefore investors cannot be hooked on the value. In this sense, it cannot be forgotten that this company is one of the blue chips of national equities along with other securities such as BBVA, Endesa or Santander, among others.
It should also be noted that this value was trading in the 8, 9 or even more euros. And suddenly it has collapsed to the current levels in the price. To the point that a good part of small and medium investors are wondering if their securities are actually cheap in order to open positions from any kind of investment approach. Although the telecom sector is not going through the best of times, because in reality this is not the case. If not, on the contrary, it is going through a real crisis due to the large debt that this class of listed companies have.
Telefónica between 6 and 7 euros
At the moment, the national telecom is struggling to move away from the levels it has at 6 euros. But it is costing him a lot of effort due to the large cap that has around 6,80 euros per share where there is a lot of paper in the middle. While on the other hand, it becomes clear that one of the keys is how the action responds to the stimuli of the financial markets. In this sense, the opinion of some of the most important analysts in the stock markets suggest that Telefónica may have markup up to around 7,50 euros. Now we only need to see if it will be able to reach those levels in a space that is not excessively long.
While on the other hand, it cannot be forgotten that Telefónica is one of the values that fell the most in recent dates and after the publication of its accounts, which the market has not interpreted as good. But if these data are analyzed more carefully, the final conclusion can be reached that there is a slight increase in income. like the debt reduction which is one of the aspects that most concern financial analysts at the moment and for which their recommendation is more to sell than to buy.
With a dividend of 6%
Of course, another of the company's strengths is that it offers its shareholders a high dividend yield. In the highest echelon of the Ibex 35 through a fixed and guaranteed payment every year and that at the moment is 0,40 euros per sharen. As a strategy to create a fixed income portfolio within a variable. Rather, it is intended for the more conservative or defensive investors who seek, above all, the preservation of their savings over other more aggressive considerations. With a very well defined profile on the users who place their trust in this important value in Spanish equities.
What strategy can be used?
It is normal for thousands and thousands of investors to wonder at this point what they can do with their shares. Although it is true that it is now with very adjusted and attractive prices for small and medium investors, the fact that it is an operation that carries certain risks due to the weakness of the telecom sector throughout the European continent cannot be underestimated. And that can lead to their prices going lower than those currently displayed. With what they could accumulate handicaps in the investment portfolio of users.
While on the other hand, it must also be stressed that this is one of the values that has depreciated the most in the last ten years. It is enough to check how 15 years ago the price of its shares was at levels of 14 euros. That is to say, more than double on how they are at the moment and that has caused some investors to have been ruined in their positions. To the point that it is one of the securities most affected by the equity markets, although this data has gone unnoticed by a large part of the financial intermediaries.
Can you go back to 9 euros?
This is another question posed by stock market users, especially those who they are in losses right now. While this volatility scenario is in force, the tranquility on the part of small and medium investors will not be entirely satisfactory. If not, on the contrary, they may fear new cuts in the price without discarding themselves at any time that may go towards the annual and historical lows. It would be a new sign of weakness that would set off all the alarms and how could it be otherwise it would serve as an excuse to undo the investment portfolio as quickly as possible.
On the contrary, if the resistance it currently has at 7,50 euros is overcome, it can become a very positive signal for what it can do in the coming months. Where the most important thing is to be calm and know how to take advantage of the opportunities that are doubtful will come to us with this action, even if they cost more time than they should. Well, this time it may last longer than most small and medium investors expect. But in any case, what becomes more complex is that it can reach the levels that it has at 14 euros and that were reached many years ago.
Large volume of recruitment
In any case, teleco is one of the reference source stocks within the selective index of Spanish equities. Because it is one of the securities with the highest capitalization and it generates thousands and thousands of titles moving every day in all the trading sessions that pass from one investor to another. To the point of renewing the law of supply and demand of this important company in the telecommunications sector. That is, you will never have any kind of problems to enter or exit their positions and at any time of the day.
While on the other hand, it cannot be forgotten that it is one of the most followed values by brokers and that therefore it is reviewed with some frequency. With the assignment of a target price so that you have a reference to its valuation in the equity markets. So that in this way you have support when entering the stock market, without having to go blindly to carry out any of the operations to make the savings profitable.
Telefónica accelerates its growth
Telefónica boosts revenue growth (+1,7% reported) compared to the third quarter of 2018, thanks to the improvement in Spain, Brazil and Germany, to the strong performance of the United Kingdom, and despite the negative impact of currencies. In organic terms, they grew 3,4%. Also noteworthy is the increase in average revenue per customer for the quarter (+ 4,3% organic year-on-year) and the improvement in the churn / churn rate. In principle, these were not results that have dazzled the equity markets. If not, on the contrary, they have been greeted with important falls in the parks.
With regard to the debt of the telecom, one of its biggest burdens for it to be listed at higher levels, the data is not so positive. In this sense, it is clear that the net debt stands at 38.293 million euros (-8,1% year-on-year), thanks to cash generation that grew 40,3% and reached 4.150 million euros in the period from January to September. Including events after September 30, the debt would be approximately 37.600 billion euros. Where, Telefónica's fiber reaches 123 million homes, of which 54,5 M (+ 11%) go through its own network, and 4G coverage is close to 80% of them.