Continuous market: attractiveness of small stocks on the Spanish stock market
Despite the profit taking experienced during Tuesday’s session, the truth is that the good performance of the Ibex 35 at the beginning of the week was practically endorsed by the banking sector, Telefónica and Inditex. The coherence in the upward trend among the large banks is undeniable but, as Antonio Espín, an independent analyst, recalls, it is advisable not to put more than 12-15% in the same sector.
Beyond the big titles of the Ibex 35, these four values of the continuous market present technical parameters that should be watched.
In the first place, the annual revaluation of Duro Felguera stands out, above 70%. The Asturian engineering company Duro Felguera has received this Monday the first 40 million euros of the first phase of the aid approved by the State Society for Industrial Participations (SEPI).
Specifically, the amount of aid to the company is broken down into 70 million in a participative loan, 20 million in an ordinary loan and 30 million in capital contribution or participatory loan. The rescue of Duro Felguera is conditional on the restructuring of the pending debt and the appointment of two directors by SEPI.
With an upward trend in the medium and long term and with a score of 8.5 according to the technical indicators of Investment Strategies, Duro Felguera is in a positive moment, with a growing volume of long-term contracts. Long-term volatility and medium-term volume resist value.
Duro Felguera technical analysis
Ercros, for its part, appreciates more than 45% in the continuous market. It has a good behavior and overcomes medium and long-term resistances of 3.14. It is worth remembering the 79% collapse of the company’s profit in fiscal year 2020, due to the impact of the pandemic.
The revaluation of Ercros in the continuum occurs in the heat of its profits: 8.72 million euros in the first quarter of this year, which represents more than ten times the profits obtained in the same period of the previous year, which stood at 824,000 euros.
The Catalan company has explained in a statement to the CNMV that sales up to March have reached 168.4 million euros, 12.7% more than the 149.4 million in the first quarter of 2020, and close to the 172.79 from two years ago. The company has attributed the increase in turnover to the increase in the sale prices of manufactured products: between the first quarter of 2020 and this year, sales increased by 19.03 million euros.
With a clear upward trend, the industrial group obtains 9 points of the 10 total, according to lyou Investment Strategies premium indicators. The long-term contracting volume stands out as negative. For the rest, the parameters suggest that it will escape to the upside. For his part, Antonio Espín explains that “if it fell towards the 2.85 area, it would invite us to take positions. Now there is some overbought, it is not the time to enter. But whoever is inside, ‘keep'”.
Ercros premium analysis
Aperam, also in a bullish phase, is a spin-off or derivation of ArcelorMittal, which constitutes, with its own identity, the division of stainless steels and specialties. “It is a narrow and strong value that could escape to the upside,” says Espín. The price of the ArcelorMittal subsidiary confirms that the steelmakers of the Ibex 35 overcome resistance promoted by analysts.
According to the technical indicators of Investment Strategies, Aperam obtains a score of 8.5. If we specify the technical parameters: long and medium-term uptrend, the value is in a positive moment and the long-term trading volume is increasing. In negative territory, the decreasing volume in the medium term and the amplitude range in the medium term, representing volatility.
Aperam premium analysis
Finally, Mediaset stands out in the audiovisual scene after going from the ‘consolidation’ to ‘bullish’ phase. Despite the falls experienced in the trading session on Tuesday, the value is appreciating more than 20% annually. The weekly falls of Mediaset can be justified as a result of the reduction of 24.9% of its profits (36.7 million euros) with respect to the figure registered in the same period of the previous year, dragged by the fall of an advertising market which continues to be affected by the covid pandemic.
On the other hand, according to EI’s premium indicators, Mediaset obtains 8 points. The stock faces volatility, which is growing both in the long and medium term and is resisting the volume of long-term trading. On the positive side, the rest of the parameters. Upward trend, positive momentum and growing volume of contracts in the medium term.
Premium Mediaset analysis
Antonio Espín, for his part, invites caution and believes that, although the underlying trend is bullish and there is some overbought, the situation for the stock is confusing. In addition, in terms of recommendations, Barclays raised its recommendation on Monday from 6.25 euros per share to 6.5, which represents a potential upside of 17.32%
If you want to know the most bullish values of the stock market, register for free in Investment Strategies.