Editor’s note: This article was first published in January 2013. The company figures (from losses of 100 million euros to a profit of just over 2 million), the 2012-2015 strategic plan, Manuel García-Durán as head of the company and the closing picks of Deoleo, Ezentis and Prisa refer to the market in early 2013.
Ezentis is currently the stock with the biggest weight in my personal investment portfolio. After analyzing the company again, along with its new situation in the market, I’m recommending it once more, because it’s probably one of the most profitable stocks for 2013–2014. Both on fundamentals and technically, it’s about to take off.
Until now Ezentis has had very little visibility in the market, and it shouldn’t be overlooked: in just a few months the company has gone from near-bankruptcy, with losses of €100 million, to a profit of just over €2 million.
We usually advise studying the company’s “commander”, and in this case Manuel García-Durán seems to know very well what he’s doing with the company, as the positive figures confirm. The restructuring process has paid off in just one year, and I personally like the strategic plan he presented for 2012–2015. Most importantly, the company now has visibility in the market and is picking up some buy recommendations. Trading volume has multiplied, and it has had more than 20 very positive sessions, technically speaking.
The other day, García-Durán said there would be surprises for the company, and I have an idea of what those surprises might be. So although I’m not in favor of making direct recommendations, in this case we’ll make an exception.
Investment strategy for Ezentis
It’s going to take off any time now (in days, weeks or months). Ideally, of course, you would have bought in the €0.14–0.155 range. Right now it’s at €0.18, although we don’t know whether it will drop back to that range; if it does, I’d take the opportunity to buy more shares. This year the stock will probably break through the resistance around €0.21, and we could see significant gains. It’s a long-term investment, and we should assume we won’t see dividends in the medium term.
I wouldn’t rule out this company ending 2013 with gains of more than 50%, or even more than 100%. So stay alert, because this could be the investment we’re looking for: it meets many of the requirements you’d want in a company. It has been hammered, it’s cheap, it’s well run and it has a lot of potential. Read: 3 stocks from Spain’s Mercado Continuo to invest in. Of those three, Deoleo and Ezentis are still valid, although don’t rule out gains in Prisa.
Featured image: Diemenzuid, CC BY-SA 3.0, via Wikimedia Commons.
