Buying the most lagging securities on the stock market constitutes a stock exchange strategy that aims to benefit from those securities that performed worse in the past year. With the hope that in these they can recover part of their positions, although they generally belong to sectors that present a higher volatility than in the rest. With increased risk that can lead to you losing a lot of money along the way. Despite the fact that they may present a more interesting revaluation potential for the interests of small and medium investors.
In this sense, it is necessary to analyze what the risks of these operations are to show whether or not it is convenient to open positions in these securities. Because you have to know that from the beginning that these are proposals in the equity markets that are in a clear downtrend and that it is not known where this current so damaging to their interests can stop. Where only investors with more experience are in a position to take positions in these financial assets.
While on the other hand, we must also emphasize the fact that it can be a serious error because many of the values that have fallen the most correspond to the companies that have generated the worst results in recent quarters. And there is a risk that the trend deepens in the coming months or even years, as has happened in previous periods. Without the investment strategies being very effective to make the available capital profitable from now on. Therefore, they are not highly recommended operations from any point of view.
Most lagging values: what does it indicate?
This technical scenario represents a terrible situation of the company in question and in any case that the selling pressure is being imposed very clearly on the buyer. On the other hand, it can be derived from a bad technical aspect that the value presents and that causes its price to go down in the short term as a result of this deterioration in the price. More typical of small and mid-capitalization securities than of the large blue chips of equities in our country. That is, the causes can have different origins and not just one as some small and medium investors may understand at the moment.
Another aspect that must be assessed with regard to the most lagging values in the stock market is the reference to the fact that this depreciation period can last a long time. Enough to leave many euros in the parks along the way and thus compromise the real status of your securities account. Because they can present unusual volatility in these cases and that can lead you to carry out a bad operation on the stock market. This is after all something that we must avoid at all costs if we do not want to have some very negative surprises from now on.
Values of these characteristics
Within this very special group in the equity markets, Banco Sabadell is worth highlighting at the moment, which is slightly higher than one euro unit. After having been between 2 and 3 euros for each share and that it constitutes a risk option despite the fact that it has a long way to go. But at any moment it can go down again and return to the point where it started its rebound, around 0,75 euros, which would be the entry point for the most speculative investors in the Spanish equity market. Another of the proposals that are listed at a discount in their prices is Telefónica, which is about to overcome the important level that it has at seven euros and after having been very close to 9 euros.
This is a very special sector of securities that are in a very special situation and that requires more complex operations than in the other bets on the stock market. In this context, we cannot forget a value as it is at the moment. REE that it has perhaps overcorrected its prices from other years. But it shows an aspect in its fundamentals that invites us to take positions from now on. Not surprisingly, investors have more to gain than lose and with the added value that it offers a dividend yield that can be considered very attractive. With an interest rate slightly above 5%, in line with those offered by the electricity sector.
More options to invest
Sacyr is another of the great alternatives of this group in such original investment and much more because it has been the subject of great recommendations by financial intermediaries. Considering it as one of the securities with a greater appreciation potential from its current price levels. Integrated into a sector, that of construction companies, which is one of the most active in the continuous market of our country. And in any case, it can be one of the great positive surprises for this current year. With the possibility of generating large profits with regard to its listing on the stock market.
While on the other hand, another of the companies that should not be missing from this list that we have prepared is Atresmedia. Because in effect, it is one of the most lagged values on the stock market in the last twelve months. But in this case it has one thing going for it and that is that it is one of the listed companies that offers the best dividend of national equities. With an average and annual profitability that is very close to 10%. That is, with a return on savings of 10.000 euros for an investment of around 100.000 euros.
In short, there are many options that we can detect with these characteristics, although the most difficult thing is that in these moments they wake up from their current atony in the best of cases. Because in most cases these are movements with a lot of risk and therefore are not operations aimed at all profiles in small and medium investors. These are strategies that are not very easy to apply.
Are these operations profitable?
These types of stock operations are not recommended for certain situations or needs of the investor and, which may be those detailed below:
- Investors who need a quick capital gains in their income statement because it is a year surrounded by all kinds of uncertainties and they need a certain liquidity.
- For those investors who clearly take positions in securities speculative, and that despite the hypothetical recovery of the international economy, it will be difficult to recover positions during this year.
- To position oneself in companies closely linked to the sectors that will suffer the most from the consequences of the economic crisis, and that will take time to recover later than others.
- Being too impulsive and anticipating buying opportunities, which sooner or later will appear in equities.
The risk of these operations are very high and although great benefits can be obtained, it is not worth opting for this investment strategy. Because it can stay under the same downtrend and therefore lose a lot of money in operations. Not surprisingly, one of the keys to making this kind of stock movements profitable lies in the fact that detect the ground where your prices are configured. But in reality this system is very complex to detect unless you are a very experienced investor in this kind of operations in the equity markets. Beyond that it can be confused with a rebound that invites to take positions in the selected values.
Purchase of lagged securities
A vast majority of financial intermediaries, far from betting on the most lagging values of the previous year, clearly bet on prudence and choose to recommend to their clients that they stay in liquidity during the first half of the year in order to see how it evolves equities at many unknowns posed by the current economic situation. Hence, they are not in favor of making purchases during the first half of the year, and, yes, once the evolution in this period has been analyzed, positions could be taken in those sectors or companies that are better responding to the current moment, although they warn that the The key to making a good operation is to be very selective when setting up the securities portfolio.
From this stock market reality, stock market analysts consider that it is necessary to flee from speculative values that do not have growth expectations or from the companies that are going to come out of the current economic crisis worse. In short, prudence and wait as equities are going to behave in these months, to try to find a really interesting buying opportunity for the interests of small and medium investors.