DÍA falls 35% on the stock market since the announcement of its capital increase
DIA returns once again to the plummets, with a considerable rebound included, which occurred since last April 29, when the company’s management announced its intention to approve a new capital increase. It will be at the Shareholders’ Meeting that the company will celebrate on May 31.
The amount will reach up to 1,028 million euros, double what was initially announced, with a share issue price of just 0.02 euros for each of the new shares with a nominal value of 0.01 euros and a share premium of 0.01 euros for each new share . 51,387 million new shares for that effective amount will be placed on the market, in two tranches, as indicated by the CNMV.
We are talking about two separate tranches of compensation of credits and monetary contributions with recognition of the pre-emptive subscription right and provision of incomplete subscription. The expansion will close at the beginning of the third quarter, at least that is how it is planned and will reduce the company’s leverage by 60%, strengthen its solvency and improve its liquidity, which since it began in July 2019 has already received more than 1,600 million .
But also, and this is what the market reads, it will dilute the current shareholding of investors to a minimum, so that if you want to keep it, you have to go to the capital increase. Thus, in its stock chart we see how the value continues to bleed in the market. With just one strong rebound and two slight breaks, 7 of the last 10 sessions were clearly negative and accumulated losses of 35.6% for the month. This translates into levels closer to support and, therefore, with annual cuts of 34% for the value.
DIA price analysis
The premium technical indicators of Investment Strategies give us a score for the Day – and with advance – of just 1 point out of the 10 possible they give. Only positive does the volume of business remain, which is growing in the medium term. The rest is perceived as clearly unfavorable for the value. The trend, in its two aspects, in the medium and long term, is bearish for Día. The total moment, slow and fast, is negative. The long-term volume remains decreasing and the volatility of the security, measured in terms of its amplitude range, is increasing both in the medium and long term.
DIA premium analysis
Beyond that, one more point. Its last outgoing CEO, Karl Heinz Holland, received a total remuneration of 4.3 million euros in 2020. The CEO left the company last May and spent only five months in office. Broken down, 1.1 million is the salary, 850,000 euros received them for the part corresponding to the group’s long-term incentive plan and the compensation for the departure of Día that reached 2.3 million euros. Already in 2019, in the entire full year he received 1.8 million, so the total amount of compensation received in the year and five months that he was with the company amounted to 6.1 million euros.
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