Fernando Rodriguez : A third of Spanish listed companies – 34%, in line with the European average – are not subject to any sort of analysis according to the Spanish Institute of Financial Analysts (IEAF). The fact that the Mifid regulations have obliged European stock exchange firms to break down the costs of the services they provide and, in particular, of the cost of analysis, which has traditionally been included in the total cost and is often provided free of charge, has made it more difficult to get information about small and medium- sized Spanish listed companies.
In order to fill this information gap, two years ago the IEAF, with the support of Bolsas y Mercados Españoles (BME), started a free stock market analysis service which to date has covered 15 companies on a more or less regular basis and has issued up to 68 information notes.
The listed companies analysed are: Liwe, Prim, Nicolás Correa, Amper, Ercross, Lingotes Especiales, Adolfo Domínguez, Borges, Iffe Futura, Bioserch, Face Phi, Desa, GAM, Ecolumber and Audax Renovables.
This group of companies is monitored using different approaches, such as “Analysis of Historical Financial Statements”, “the Inception of the Hedge”, “Quarterly or Annual Results” and “Review of Estimates”.
It is important to stress that these financial reports are not conventional fundamental analyses – that is, they do not include financial projections, valuations or recommendations – they aim to “be useful tools for investors to know more about a company through the systematic presentation of the available information so that investors can get a first impression of a company’s potential interest.” See: