Banco Sabadell at a delicate moment: it trades below the euro

<>

The fact that it is currently trading below one euro is actually a very dangerous situation. Because listed companies in this situation rarely break out of this level in price. In other words, it is very difficult for them to quote above the euro again, as has been demonstrated very recently with a good handful of stocks on the Spanish continuous market. With an obvious risk of get stuck durante un período de tiempo más o menos inmenso. Sea cual sea el caso, no son propuestas muy deseables para abrir puestos de ahora en más.

The trigger for this weak situation in Banco Sabadell has been its poor business result in the last year 2018. They have not convinced the different financial agents and, as a result of this capacity, a selling pressure has been imposed on the buyer. Even if, with a unusual intensity in these cases and that has led to their shares being left no less than 7% in a single trading session. With an obvious and direct impact on the rest of the securities that make up the powerful Spanish banking sector.

Sabadell: very weak results

The fact that the shares of this important bank are currently at levels between 0.80 and 0.90 euros is due to the publication of its business results in 2018. In which the Sabadell banking group closed the financial year with a attributed profit of 328.1 million euros, after completing the migration of TSB and completing the balance sheet, which have had impacts one out for a total of 637.1 million euros. Without taking these extraordinary items into account, net profit growth is 9.6% year-on-year, reaching 783.3 million euros at the end.

As to banking business (interest margin + net commissions) shows the strength of the business, with an increase of 4.1% year-on-year and a growth of 2.4% in the quarterly comparison. At the group level, the year-on-year growth is 2.9%. On the other hand, the net interest margin stood at 3,675.2 million euros at the end of 2018 with a growth of only 0.7. Excluding TSB, the net interest margin amounts to 2,675.5 million euros and represents a growth of 1.1% year-on-year and quarterly, driven by volume growth.

Badly picked up by investors

They are annual accounts that have not been well received by the different financial agents. If not, on the contrary, they have served to massively undo positions in the face of a very delicate situation on the part of this bank integrated into the selective Spanish equity index, the Ibex 35. Where the fact that it is losing confidence among investors. To the extent that certain financial analysts have compared their situation with that of the popular Bank. Even though it may be a somewhat reckless statement in the current circumstances.

On the other hand, it cannot be forgotten that the shareholders of this national bank have lost in the last thirteen months almost 45% in the valuation of this stock market value. It is a lot of money that has evaporated in a very short time, beyond what can be lost at this very moment. Because in effect, there are already some financial agents who have valued the price of their shares at levels of 0.50 and 0.60 euros. What would be a new bearish section that would trap many small and medium investors.

Next dividend distribution

It has also been announced these days that the board of directors has approved the distribution of a complementary cash dividend of 0.01 euros per share, at the same time as the 0.02 euros already distributed per share. In total, 0.03 euros per share, which represents a to pay 50%. In this regard, the bank's shares continue to be one of the most profitable in terms of this payment to the shareholder. Despite the decrease that has occurred in this stock exchange payment and that will materialize in the coming months. In line with the objectives of the rest of the securities listed on the Spanish equity market.

It has also had an impact on Banco Sabadell unifying its operations in mexico to strengthen your business in the Central American country. Whatever the case, the operation reflects the positive results of the entity in Mexico, which continues to exceed its growth expectations year after year, closing 2018 with a placement higher than 37% in connection with the results of the previous year, 2017 and which presents an estimated absorption of 316% compared to 2017.

Bounce over the next few months

Either way, it is very possible that in the coming weeks or even months you can develop rebounds of a certain intensity. As a result of downward trend that it has developed and that it would conform to adjust the current supply and demand in its values. Beyond other technical considerations and even from the point of view of its fundamental references. Because in reality, it is absolutely normal for rebounds to occur in the coming days, and of great intensity, but without forgetting that the underlying trend of the value is clearly downward.

As long as it is not able to recover the euro unit, it will be very difficult for it to be a profitable security from now on. It should not surprise us, it should be remembered that until recently it traded at levels of 2 or 3 euros per share. From the stage, it cannot be said that Banco Sabadell shares are cheap. Not much less, if not that on the contrary it is the price that the equity markets are dictating at the moment. Even when the doubts are not helping the listed company to stabilize its prices. On the contrary, they are knocking down support after support.

Bad situation of banks

Within the bad tone of the important banking sector, if your desire is to invest in this segment, you have other options that may be much more interesting at this time. In this regard, the Santander Bank It is that the best behavior is developing these days and despite its downward trend. It moves in a range that goes from 4 to 5 euros per share. But on the other hand, it is the financial institution that is showing less volatility in the conformation of its prices. Without reaching the levels of falls that Sabadell and Caixabank have shown these days.

BBVA, for its part, has a significant discount in its price as a result of its notable falls and that have led it to break down the strong support it had at 5 euros. To the point that its valuation on the stock market has been equated with that of its competitor, the entity chaired by Ana Patricia Botín. At a time when a new restructuring of the banking sector. With possible acquisitions that can lead to greater volatility among all representatives of the sector.

Wait before taking positions

Given this general scenario, it is much better that you are out of the market or at least the banking sector. It should not be surprising that negative surprises continue to appear that can make you lose a lot of money in open positions. It is advisable, therefore, to wait for the opportunity that you can buy from more competitive prices que los que muestran ahora mismo. Con descuentos que pueden llegar inclusive al 10% en un plazo medio de tres o seis meses. No debes de anticiparte a los acontecimientos y la prudencia será un value added en este momento.

No se puede olvidar que el sector bancario en general está siendo uno de los más activos a principios de año. Aún cuando esta vez, desde un punto de vista negativo del que no se puede abstraer para desarrollar una strategy de inversión convincente. No en vano, es mucho lo que puedes perder por el camino y es conveniente que lo tengas en cuenta ahora mismo. Como fórmula para evitar pérdidas en su cartera de valores al final del año. Más allá de otras consideraciones técnicas e inclusive desde el punto de vista de sus referentes fundamentales. Debido a que efectivamente, es absolutamente normal que se produzcan rebotes en los próximos días, y de gran intensidad.