Given this phenomenon, Ambit He consulted experts in the capital markets to try to understand, first, what this dynamic is due to and secondly, Whether it’s time to get into some of these non-leading stocks.
General panel: what is behind these increases
As the financial advisor explains Gaston Lentini In statements to this medium, stock market cycles are generally characterized by rises, first in financial stocks, then services and/or industrial stocks.
“In the case of the Buenos Aires stock market we saw how industrial actions, such as Aluar and Siderar, They have risen a lot, while all the energy companies have also risen a lot, and the banks have done the same in recent weeks. But what happens?” Lentini asks, and then explains that: “In the first stage, when the cycle reaches a certain maturity, what happens is that investors They already saw increases in all the big companies“.
And it exemplifies that, if one thinks about construction, one thinks about irsa. “Once that stage of the cycle is exhausted, the next comes, which has to do with the rise or interest of investors in smaller companieswhich are perhaps the ones that are most relegated,” adds Lentini.
“And that’s where these companies come in, as can be GDCILast week was boltthis Morixe or Havana“adds the analyst known in networks as the Doctor of your Finances.
For Joel Lupieri, of EPyCa Consultora, it is difficult to explain these sudden movements, “without taking into account that they are very low volume actions“. For the analyst there could be some “computer pressure, which leads them to the rise very quickly.”
“Beyond that, it is very likely that there will be renewed interest in the real estate market, which is a form of indirect dollarization. With some restrictions on operating the dollar, it is possible that investors will look for some alternative of this style,” says Lupieri in reference to the stock of GDCI.
Non-leading stocks and risks of poor liquidity
In this context, it is noted that some companies in the general panel may have more modest volume movements compared to others. These smaller companies “present an important peculiarity“explains Lentini.
“If a company, for example, is moving 10 million pesos a day and someone wants to buy 30 million pesosthe alternatives are limited.” What the analyst means is that either the investor can be patient when buying, and do so little by little every day to avoid raising the price artificially, “or he buys everything at once. take out and raise the price and that’s it.”
This, Lentini assures, is what often generates this type of increases, “abrupt and almost meaninglessbecause it is not that the company for some reason presented a change in its fundamentals that would enable a 35% rise in its shares.”
That is, the increase is not supported by a substantial change in the company’s business. Therefore, investors should be cautious and avoid getting carried away by greed when observing striking increases on the screen, since The risk is that investors may be tempted to buy with the expectation that the uptrend will continue.. However, the reality is usually that, When the same investor who caused the rise wants to sell, they could face difficulty finding buyers, which could result in a sharp drop in the value of the asset.
“As a recommendation to protect investors, it is suggested that, in case of making risky decisions, only a small portion of the capital is allocated to mitigate possible significant losses,” Lentini slips.
“Gems” on the leader panel
Now, in the leading panel There are also some moves to analyze. As the strong rise of Silver Commercial Society (COME), which already showed a strong rise in its shares last January. Daniel Osinaga, Argentine market investor, He comments in dialogue with this medium that, “COME is a money-making machine. It is listed at $220 million more or less.. He has the most cash, and his ownership in the General de Combustibles company is worth more than those US$220 million.” For Osinaga, “the question is not why COME stock is going up, but why it is so cheap.
Silver Commercial Society is an Argentine holding company with presence in strategic sectors such as energy, telecommunications, entertainment, agribusiness, transportation and real estate. Founded in 1927, it is one of the companies with the most history and liquidity on the Buenos Aires Stock Exchange, listed also at the Six Swiss Exchange in Zurich.
Lupieri, from EPyCA, explains that COME is linked to “pure trading” and that the entry of new capital into the stock market could consider that this diversified holding has the potential to resist crises, especially if its business segments, such as energy or tourism, perform favorably in 2024.
It should be noted that COME has more than 20,000 shareholders in 17 countries. If the Emergency Need Decree and the omnibus law proposed by Javier Milei are approved to deregulate the national economy, many of the sectors in which the company operates could potentially benefit.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
