Sunday, December 10

DE Shaw joins the group of bass players at IAG

The bottom D.E. Shaw, Founded and run by computer engineer David E. Shaw, he landed as a bearish investor in IAG capital.

Just when the company has rebounded 16 percent for the year and is in full attack on the psychological resistance of 2 euros, the hedge fund reported a short position on IAG of 24.8 million shares, 0.5 percent of the capital, according to London market records.

At least six investors have disclosed bearish positions in Iberia’s parent company, totaling 195 million shares or 3.93 percent of outstanding capital.

The largest short position belongs to Citadel Advisors Europe, with 0.88 percent. However, the last movement of this fund has been withdrawal, after lowering the shorts by 5.4 percent.

The same decision was made by another division of the firm, Citadel Advisors, which cut its bearish positions to 0.7 percent.

Shaw’s hedge fund arrives in full recovery of tourism

The movement of D.E.Shaw It came as UK industry anticipates a dramatic improvement in flight demand and at a time when other bears are unloading short positions.

A) Yes, Kintbury Capital he also joined Citadel funds and has just reduced his short position to 0.6 per cent of IAG shares, which came amid a recovery in tourism stocks.

Other bears present in the capital of the airline are Pictet AM, with 0.69 percent and Sandbar AM, which holds 0.59 percent.

In the Spanish stock market, D.E.Shaw is an accomplished bear and currently has short positions on 1.22 percent of Audax Renewables and about 0.68 percent of Cellnex Telecom.

The risks of IAG

Despite IAG’s rebound, bearish investors land on companies when they suspect that there may be factors pushing prices down.

In the case of Iberia’s parent company, has already explained what are the factors that most concern investors. Among them are liquidity levels, cost control or network deployment at pre-pandemic levels.

Of all of them, the one that generates the most concern in the market is liquidity. The group has 12.1 billion euros in cash, a sufficient amount to endure more than 30 months burning cash in the worst case scenario.

The analysts of Bank of America they considered that with these cash funds a new capital increase would not be necessary.

However, these experts are not sure that the rest of the market thinks the same: “we expect that the market’s concerns regarding a possible capital increase will continue to weigh on the shares, given the short-term challenges,” said these experts.

In fact, the economists at the US bank are among the few investment firms that see more shadows than lights in IAG. Therefore, they have just withdrawn their buy advice to ‘neutral’, reducing the upside potential to 12 percent.

Objective of the rebound at 2.2 euros

From a technical point of view, the price of IAG It has been battling since the beginning of the year against 2 euros, a resistance of round numbers that is difficult to beat.

According to the technical analysis of the value that it elaborates Josep Codina In, a purchase entry on IAG can be considered on the current price levels, at 1.97 euros. The objective of this operation is 2.21 euros and the ‘stop loss’ level is 1.832 euros.

It will be an area to take into account, because according to what he said Codina, the entire range between 2.1 and 2.2 euros is a very important resistance for the price of IAG.

Just a little below, at 2.01 euros, is the average of 200 sessions, a key long-term reference whose conquest could be a major catalyst for the stock.