If there's one stock that has disappointed all small and medium-sized investors, it's Eurona. Currently, it's trading at levels very close to €0,30 per share, when just a few years ago it was trading at 3 or €4 with prospects for appreciation in the short and medium term. This has been one of the most egregious errors made by some financial analysts who predicted that positions should be taken in the stock with the goal of reaching €5 in its appreciation.
However, it has become clear that there have been many vested interests trying to influence the decisions of small and medium-sized investors. Indeed, those who have fallen prey to this stock market scheme have lost over 200% of their value compared to a few years ago. Their outlook is far from optimistic from this point forward. On the contrary, their share price could fall to €0,20 in the coming months due to its pronounced downward trend across all investment horizons.
Not only has it been a disappointment for all retail investors, but in the end, the business objectives set by the management of this disappointing technology company have not been met. Investors who had taken positions in the stock in previous years have lost almost all of their money, having hoped to generate returns in the equity markets. Quite the opposite has occurred, and now all that remains is to wait and take advantage of any significant rebound to unwind their positions and never invest in the stock again.
Eurona, small cap value
This is one of the least liquid stocks within the Spanish stock market. However, it is actually listed on the Alternative Stock Market (MAB), which is where the lowest-capitalization stocks are listed. Eurona is a company belonging to the Spanish multinational telecommunications group. It provides Wi-Fi services in areas with limited access to this form of communication and has ultimately failed in its attempts to offer this service to a significant portion of users across Spain.
It cannot be forgotten that this is a telecommunications, multi-connection and Internet service company. As stated on its website, it has a presence in more than twenty countries and with more than 40.000 clients, Eurona offers connectivity in areas with poor or no coverage, especially in rural areas and municipalities with less than 100.000 inhabitants.
With multiple business units
This MAB-listed company incorporates four business units within the new technologies sector. Its commercial strategies have focused on satellite operations , such as providing internet access via satellite to homes, businesses, schools, hospitals, and even ships. It also offers services for foreign clients, including internet, international calls, and international television channels. However, these services appear to have attracted little interest from domestic equity markets.
Meanwhile, some of its most significant business ventures have failed to materialize. As a consequence of these actions, the financial markets have caused its share price to plummet to its current levels below one euro. Recovery from this point is extremely difficult, as evidenced by several stocks that have undergone this challenging price formation process. One of the main concerns for investors is the possibility that its shares will be delisted.
Business plans until 2022
Its business plans for the next four years include the possibility of profiting from the excess capacity, both in Fixed Wireless and in Satellite, investing in attracting and reducing customer disconnections up to 24% per year. Like its desire to carry out an operational cash generation in the medium term and sustainable profitability. Not very fortunate because their short positions have been very clearly imposed on the buyers in recent years. With total clarity and hardly any rebound of a special relevance.
On the other hand, it cannot be forgotten that this is a small company that lives on expectations in the financial markets more than on realities. That they have not been able to maintain the opinion of financial agents and intermediaries. To the point that it can be said without fear of error that it is one of the most negative values ​​of national equities. Few have depreciated in such a way and with a high virulence in the fall of their shares. That is, right now below the euro unit, with what this really means.
There is no goal ahead
In any case, there are no investment strategies to develop from now on. Because in no way can it be said that the price of its shares is cheap. Not much less. If not, on the contrary, it has been the market that has put it on its site and everything indicates that it may go further down in the next trading sessions. Even with the possibility of an even more negative surprise. In all cases, it is a value that should not be touched in any way unless you want to take a series of totally unnecessary risks.
Eurona is no longer even an attractive security for speculative or more aggressive trading. Neither for this you can do any strategy in the investment, nor in the trading movements. Not surprisingly, it is one of the securities with the highest risk that you can find at the moment in Spanish equities. Where you still have a lot to lose from now on and of course nothing to gain. In addition, it has a volume of negotiation of its titles that is day after day at minimum levels.
It can be close to 0,10 euros
One of its main risks is that it may head to the lower base of its bearish channel. Around 0,15 euros per share and from where its reaction capacity is practically nil. More on the other hand, you can get hooked on their positions if you open positions in the stock. That is, with the sale price very far from the purchase price. With all that this clear trend means for a good part of small and medium investors.
It's no coincidence that it's in a freefall situation, meaning it has no support or resistance levels below, which could take it to even lower levels in the coming years . This presents a risky trading scenario that makes it completely unjustifiable to apply any investment strategy, no matter how aggressive. It's best to forget about it and consider other stocks where it's not so difficult to generate returns effectively, and without risking significant losses from your current positions.
From this point of view, there is nothing to do with Eurona titles. Although it is thought that they can recover in the coming months or even years. Not in a security to invest right now.
Pact for rural disconnection
Eurona, the Spanish multinational telecommunications company, proposes a State Pact after the elections to end the disconnection of rural Spain , taking into account that the main parties with parliamentary representation include in their electoral programs the importance of internet access in rural areas.
Depopulation has become one of the workhorses for the services of this company to expand. As a formula to find a business niche that can drive the prices of your titles from now on. To do this, it has opted for different investment strategies but which have not been translated into their valuation in the equity markets. Because its vision of profitability is stipulated in the medium and long term.
Among the measures considered, it emphasizes the need for all towns to be connected to the Internet, knowing that 10% of the population , especially those living in these areas, lack ADSL connection or their speed is less than 2 Mbps , which may imply new solutions for this important part of Spanish society.
In any case, Eurona does not have the confidence of small and medium investors. If not, to the contrary, there are not many securities that move every day in the equity markets. At the risk of getting hooked on their positions.