Alfonso de Gregorio (Gesconsult) | Talgo is a value investment. Its stock price its attractive and it has huge possibilities of winning new contracts which would really boost the company’s valuation. Amongst the risks facing the company, there is the scarcity of contracts in the period 2015-2016, which has generated a certain lack of confidence in the company’s ability to win new contracts.
Ofelia Marín-Lozano | The exceptionally low interest rate scenario, with short-term rates even in negative territory, are undoubtedly an incentive for major corporate transactions. Being able to get 20-year funding at a fixed annual rate of below 2% is fuelling a slew of M&A deals which, in another scenario, would be prohibitive.
Someone else has fallen victim to the market: the plunge in Banco Popular’s shares has led to Ángel Ron being replaced as the bank’s chairman. But apart from the stock price’s ups and downs, Popular’s new chairman Emilio Saracho, former global vicepresident of JP Morgan, has a difficult task ahead.
Spanish midcap Telepizza has announced a Master Franchise Agreement with Momenin Investment Group (MIG) to open around 200 stores in Iran over the next 10 years.
OPEC has finally agreed to cut production by nearly 1.2 million bpd from January and for 6 months, representing about 4.5% of global output. Now we need to ask two questions: will the cartel countries respect the agreement? What will happen with the recent investment deficit in the sector? Will it still be profitable for the big producers to extract oil?
Indra has launched a full bid for Tecnocom at 4,25 euros per share in cash and stock. Analysts see the move as a further step in Indra’s restructuring and is in line with its strategy for gaining critical mass.
José Benito | Since its stock market debut in April at 7,75 euros, Telepizza’s share price has dropped 39% compared with a 6.5% decline in the blue-chip Ibex 35 index over the same period. There are a lot of factors behind this relative negative performance, including the company’s overvaluation at the time of its listing or disappointment with its quarterly results.
Initial figures relating to India’s demonetization indicate that some $80 billion of old bills have been handed into the banks to be exchanged for new ones. The objective of this exchange is to reduce money laundering and the black economy, which will increase the amount of tax raised and favour the banking sector’s penetration in the economy in the medium-term.
UBS | Interest rates available on cash have been pushed to record lows, as central banks have attempted to revive weak economies. Investors have sought returns elsewhere, but the prices of investment grade bonds, high yield bonds, and equities have now all been pushed up. The search for yield could take on new impetus in 2017, with inflation rising even more quickly than interest rates.
Spanish engineering company Talgo declared yesterday that it was the “virtual winner” of an order from Renfe (the state-owned passenger and freight rail transport operator) after presenting the best technical and economic bid.