The closure of the Pontevedra cellulose plant is pending

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ENCE's expectations in the equity markets today depend on the feasible decision to close the Pontevedra pulp mill. In this regard, this past weekend a very crowded demonstration was held in the streets of the capital of the province of Pontevedra and Marín to demand the closure of the Ence factory. Bajo un banner con un título como el siguiente: “La cancelación de Pola da una extensión de Ence. Polo de saneamiento integral da ría ”, para exigir la ampliación de Ence. Este es un escenario que puede dificultar el alza de la compañía en la conformación de sus precios.

At a current time, where Ence becomes one of the most profitable securities of the selective index of Spanish equities, the Ibex35, it is one of the most optimistic of all. With an annual profitability that meets the double digits and with broad expectations of exceeding current levels in its prices. Since this value was listed on the Ibex 35 it has not stopped rising, with its logic and corresponding corrections. Above the great values of the Spanish stock market, especially those of the banking sector.

But the viable closure of the Pontevedra cellulose is acting as a Damocles sword to continue in its current uptrend. To the point that it is the factor that ultimately determines their movements in the coming months. So that your actions are receptive to purchases or, conversely, to sales. Not surprisingly, its evolution in the stock market is mediated by this fact that small and medium investors are pending. Because it cannot be forgotten that in the last trading sessions its volatility has skyrocketed significantly. With differences from one session to another of up to 8%.

Ence: one of the rising values

Within this general environment, it will be necessary to be very attentive from these moments of the viable closure of the Pontevedra pulp. Where, any news can lead to your prices. at one or other levels in the quote. En estos momentos, la papelera nacional cotiza a niveles de 3,80 euros por acción, con una revalorización anual que se sitúa en los dos dígitos. Siendo uno de los valores más recomendados por los diferentes analistas del mercado de renta variable. Con un target inmediato que se sitúa en cotas algo superiores a los cuatro euros.

Despite everything, and despite its appreciations in recent months, there is no doubt that it is one of the securities with the greatest volatility in the configuration of its prices. With differences between their maximum and minimum prices that can get to 5% or even more intensely. From this point of view, it is a much more dangerous security for the interests of small and medium investors. Where only the most aggressive are in a position to open positions in this company integrated in the selective Spanish equity index, the Ibex 35.

Higher risk in corrections

Sea cual sea el caso, no puedes olvidar que estás expuesto a un recorte en tus precios como resultado de tus últimos incrementos. Pero además sobre el viable cierre de la celulosa de Pontevedra. Añadiendo muchos more unknowns than desired by a good part of the small and medium investors. Where everything can happen depending on the negotiations that start from now on. Beyond other series of technical considerations and even from the point of view of its arguments. So it can go up or down in the rest of the year.

In sessions of a certain downward draft, it cannot be forgotten that Ence has been one of the few titles that has closed in a positive sense and sometimes with a percentage worthy of mention due to its great intensity. Even though right now you are at a great crossroads for the course you are going to take their prices from now on. Because it is not entirely clear that it can develop under an uptrend as has happened so far. In a way, it will also depend on what the national equity selective does, as in the rest of the national stock market. Even though, in any case, its environment is clearly favorable so that you can make profitable savings through this personal bet.

With very positive news

To counteract the negative effects of the closure of the Pontevedra pulp mill, other much more positive news for their commercial interests has appeared in the media. One of the most relevant is the one that has to do with the complex of renewable energy of Ence in Huelva. To the extent that it has renewed the European voluntary EMAS certificate, a community regulation of eco-management and eco-auditing that aims to promote continuous improvement in the environmental performance of institutions.

Like the own results that it has presented in the last quarter. Where its results have been shown have been reduced by around 40%, affected by exchange rate differences and the increase in pulp inventories with a view to closing the Navia biofactory, which will take longer than usual to increase its capacity by some 80,000 tons. This is news that was very well received in the financial markets by small and medium investors. Beyond other technical considerations on the part of the value.

In addition, the fact that the company has frozen the investments of its Strategic Plan in its Pontevedra plant and will concentrate them in Navia has been present, given the legal uncertainty caused by the change of criteria of DG Costas on the expansion of Ence in the Pontevedra province. And that is undoubtedly one of its big problems so that it can quote at a better price this year.