The shares of the chemical Sniace will return to the parquet of the Spanish Stock Exchange in the coming weeks. There is still no fixed date for their titles to be exchanged again in the Madrid square, even though forecasts suggest that it will be around 2 or 3 weeks. Not surprisingly, the Cantabrian company has already started the procedures to lift the suspension of its listing on the Stock Market.
Remember it In September 2013, the National Securities Market Commission (CNMV) decided to provisionally suspend the trading of its securities.. Faced with the company's decision to enter into voluntary bankruptcy, faced with the impossibility of reaching an agreement to pay debts or obtain financial support for its business project.
Now, when the request to lift the suspension is accepted by the national regulatory body, its securities will be listed on the stock market again. It is important to mention that closed at a variation of 0.196 euros per share. Practically at historical lows, and after having reached a maximum of 6.39 euros in previous years.
As a result of its evolution in the financial markets, it will be essential to know the price of your purchase. Because depending on this variable, you can apply one or another strategy before its return to the stock markets, to achieve a better return on your savings.
At what prices did you buy the shares?
Whatever the case, there will be different situations in those businesses that acquired their securities at 3 euros, or on the contrary, those that formalized their operations weeks before their suspension, around 0.20 or 0.30 euros. If you are in the first tranche, you will be one of the most difficult to recover all (or part) of your savings. Because with the prices of the last closing you will be with losses close to 90%.
While if you have been one of the last minute buyers, you will face the arrival of value to the markets in a more uncomfortable way. And with a greater predisposition to fix the problem in the short or medium term as soon as their prices respond positively to the implementation of this measure. Not in vain, you'll be just 10% or 20% away from reaching your goals, which are nothing more than closing positions without losses, and with a bit of luck even with capital gains.
Another aspect that you necessarily have to take into account to make the most of your investment is that once their securities are listed on the Spanish continuous market, the company plans to carry out a capital increaseTherefore, new shares will be put into circulation, at the rate of two new shares for each old one, at a nominal value of ten cents each, with preferential subscription rights of the company's shareholders.
But how will this trade move affect your share price? Especially, it will generate a diluting effect on them, which lead to trading below the closing price before suspension. This is explained because as there are more titles, their price will decrease depending on their number.
With which predictably - and taking into account the results of other capital increases made by companies listed in variable income - losses will be the common denominator of the new scenario that you will present when you rejoin the financial markets.
When the shares are not listed ...
This rare scenario has meant that he has spent more than two years without being able to do totally anything with his actions. The reason is very simple, not being able to exchange your titles, you find yourself in a situation of total helplessness -very characteristic of the values that have developed this economic movement-, and that in recent years have affected more than one listed company: Pescanova, Campofrío or La Seda de Barcelona, among others.
A very complex procedure where the only thing you can do is wait, with a little patience, until it is finally resolved. In some cases, in a positive way, reinstatement, as in this specific case; but in others by liquidating the company, and as a result, losing all the savings invested from the beginning.
What can you do in these situations? Decidedly prevents you from selling them on the market, and only a procedure for the purchase of shares between individuals is enabled, which is also very complex, and which will entail many difficulties in its resolution. Not in vain, you will need a notarial certificate that will validate the operation, which will require the expenses demanded by this professional service, significantly increasing the cost of the results of your operation.
On the other hand, The banks will charge you a custody commission, even if it is very small, for the management of the securities.. Yes, you have understood it correctly, even though they lack real value because they are not listed. In conclusion, plus additional expenses, even if you cannot manage ownership of this financial asset.
Companies with little capitalization and liquidity
If you review the history of all the companies that have been suspended on your list, you will come to a very clear conclusion. They belong to small business groups, with serious financing problems., and whose titles offer the minimum liquidity in the markets.
At the same time, They are characterized by being very volatile, with large differences in the prices of the same trading session., which can even reach 30%. Most are the so-called chicharros, speculative securities that delight the most aggressive investors who try to become millionaires in a few days, and who at the end of the procedure find that their assets have decreased considerably, with the real opportunity of practically losing it. . everything.
A large majority of financial analysts recommend avoiding these values, under any situation. The further the better, is his advice. Not only because their price fluctuations are truly high, but because experience shows that they can be candidates for this unpleasant situation: suspension in price. With all the inconveniences that are reflected in this post.
And what is more, their low capitalization generates that you have more than one obstacle to sell them at market price, since the demand for their titles is less than the supply. Especially when it consists of large packages of shares due to its high economic value.
Given this scenario presented by these values, the most advisable thing is to abstain in your operations. The supply of the national continuous market is so wide that it is not limited to its titles, where the gains can be truly striking, but the losses no less acute. Another characteristic they offer is that they do not distribute dividends among their shareholders, as they are companies with serious financing problems, which do not originate any benefit in their business results.
What will happen when I operate again?
Can you take positions in the value? If you want to buy shares for the first time, you will have the possibility to develop them at very low prices, and in this way the risks will be significantly lower. Nonetheless, Until the effects of the capital increase pass, it will not be recommended that you get involved in any operation.
Even when their prices are undervalued, any decrease in its price can represent the loss of many euros. If it meets a price of 0.10 euros, compared to its current price, it would mean a decrease of no less than 50%.
Six tips to boost your value position
The resumption in your listing is undoubtedly good news for your interests. If you were hooked on their titles just two years ago. But in any case, you must be prudent with this measure and take a series of precautions to try to recover at least part of the money invested in this company. Through some simple recommendations, you will get more out of the return to the markets of the shares of this company.
- Its return to the Stock Market will not imply significant revaluations in its price, far from it, with respect to the last closing (2013) since its commercial accounts are seriously compromised through its debts.
- You will have to take advantage of any bullish movement in the first days of trading. sell them at market price, especially if you want liquidity to cover your main family expenses.
- Under no circumstances should you look at the prices at which it was quoted. a few years ago, since it probably never will, at least in the short and long term.
- You can take advantage of their situation to develop disabled sales to lower your bill for the next fiscal year, and from this dynamic, save a few euros in the income statement.
- It will be very timely that you formalize the sale of the shares to divert their amount towards other companies that today have higher expectations of appreciation in their prices. In order to reduce the losses generated by this value on the Spanish Stock Market.
- In case you do not need the money, and if the investment is not very large, you can wait to see how their prices evolve in the coming months. Should the restructuring of the company serve as a clear pretext for prices to take a long-term upward momentum.
