There's nothing worse in the stock market than being invested in shares that have lost virtually all their market value. This brings to mind what happened with Banco Popular and other companies that eventually ceased trading . These are companies whose shares have depreciated by over 50%, and in some cases, are even approaching 100%. You can lose all your invested capital, and what's worse, you can do absolutely nothing to remedy this undesirable situation for investors.
Within this general context, we're going to show you some of these stocks so you can identify them from now on. This will help you avoid taking positions in them and also allow you to track their price movements. While there aren't many, there are enough to warrant setting alerts when configuring your next investment portfolio. Ultimately, you don't stand to gain much from holding them, contrary to what some users might think when they see them at very low prices.
Fortunately, stocks that have fallen by more than 50% are a minority in the current Spanish stock market. However, there are some striking examples, such as Terra and Banco Popular . Ultimately, the goal is to avoid situations that are even more detrimental to your personal interests. There are usually factors that explain why stocks have reached these levels. In such cases, opening positions is very risky because the risks are enormous regardless of the investment strategy. This stock is one of the least recommended by the most renowned financial analysts.
Securities with the most losses: Day
El crash of this company It has been one of the great surprises in the last year and that has led to a large part of the small investors having lost a part of their savings.
It is a security that in a very short space of time has lost its entire valuation on the stock market. By going from 6 euros to just a few euro cents and that has led to investors losing a very important part of the capital invested. In a business operation of very doubtful application and without the possibility that it could recover a good part of its valuation in the equity markets. To the point that there are practically no purchases, not even from a speculative approach.
In all cases, it is a value with very little to do from now on. Where it is easier to lose money than to earn it in this class of stock operations. Where the risks that you can run are much greater than in other values of the national continuous market. Because you cannot forget that you have lost more than 95% of its market price. To the point that it has left the selective index of Spanish equities.
Telefónica at historic lows
The leading telecom company has been a major disappointment for small and medium-sized investors. This is especially true given that it was one of the major blue chips on the Spanish stock exchange and attracted a significant portion of investments from more defensive investors. Furthermore, its share price has plummeted to around €6, after recently trading above €10.
The only positive aspect that has remained constant over the years is the high dividend it pays to its shareholders. With a fixed and guaranteed annual return of around 6% , it's one of the highest in the Ibex 35. Shareholders pay a monthly dividend of €0,4, and no reduction is planned for the coming months. This is one of the few incentives to invest in the stock, with the aim of building a fixed-income portfolio within a equity holding.
Sabadell pending the functions
It's the bank that has fared the worst within this important sector of the Spanish stock market. This is because its management is creating a lot of uncertainty among different financial agents. To the point that it has ultimately fallen below one euro and faces a very bleak outlook for the coming years. Indeed, selling pressure has clearly outweighed buying pressure, with the inherent risk of trading below one euro.
On the other hand, it cannot be forgotten that it is a value that is currently pending what may happen in the sector. In other words, on the possible mergers that are being considered by the most important areas of the financial sector. And of course this fact is weighing down its position in the financial markets, and therefore its potential for revaluation is practically non-existent, at least in the short and medium term.
Atresmedia in a declining sector
If there's one sector in the equity markets that's not currently performing at its best, it's the audiovisual media sector. Atresmedia exemplifies this, as it's currently experiencing a clear downward trend and one of its lowest share prices in recent years. However, it also presents significant upside potential, provided the trend reverses from bearish to bullish, which would completely transform its outlook in the equity markets.
All these values have gone from high to low in recent years and in some they have reached a ridiculous valuation below the euro unit. With very few prospects to overcome for various reasons and that have led small and medium investors to have their capital invested at this time have been greatly diluted.
Ence the great disappointment
Ence Energía y Celulosa achieved a net profit of € 27,8 million in the first nine months (-69,6%) and an EBITDA of € 126,5 million (-40%). The EBITDA of the Pulp business was € 85 million (-53%), while that of Renewable Energy was € 41,6 million (+28%). The results have been affected by the situation of the pulp market, with a net price of pulp almost $ 200 / t below its average in the last 10 years.
In the Pulp division, the operational improvement in the third quarter is noteworthy , with a reduction of €22/ton in production costs compared to the previous quarter. The company is focused on the cost reduction program launched in July. In the Energy division, the upcoming start-up of two new biomass plants and the repowering of some existing plants will result in an estimated improvement in the business's EBITDA of approximately €30 million/year. Ence also has a project portfolio of over 2.100 MW in biomass, photovoltaics, and hybrid solar thermal power plants. This has been an annus horribilis for the company.
Bankia and the bad year in banking
Bankia has attracted over €1.000 billion in assets during the first ten months of the year through its portfolio management service, commercially known as Bankia Gestión Experta. This marks the first time it has surpassed €3.000 billion in assets under management through this service. Furthermore, the bank has enabled online access to this service via its app and 'Bankia On Line', the bank's online banking platform.
“With 'Bankia Expert Management', once the client is correctly profiled in one of the four existing portfolios (Tranquil, Growth, Balanced and Advanced), they no longer have to worry about deciding what to invest in, when to do it or look for the markets with the best prospects, among other things. The team of professional managers at Bankia does it for them,” says Rocío Eguiraun, director of Bankia Asset Management.
In order to adapt the operation of this service to online channels, the entity has carried out a series of adjustments regarding its marketing through branches. This has reduced the minimum investment for hiring digitally from 10.000 to 1.000 euros. It has also adjusted the commissions: digitally contracted portfolios that have assets of less than 10.000 euros (minimum amount established to subscribe the service in offices) will be exempt from paying the success commission of 8% on the profitability achieved. They will only be charged a management fee of 0,20% on the effective value of the portfolio, with a minimum of 10 euros if this value is less than 5.000 euros.
To subscribe to the service through online channels, the customer must have a digital profile . This means they must have exclusively digital correspondence and have provided the company with their contact information (email and mobile phone number).