Wednesday, December 8

Ence’s rally whets the bears’ appetite


The titles of Ence They have risen close to 20 percent in the last month and have just had five consecutive positive sessions, a streak not seen since July. The price settled at 2 euros per share and will now seek to exceed 2.5 euros.

The short-term rally developed by the largest eucalyptus pulp producer in the Old Continent and biomass energy producer in Europe has attracted the attention of hedge funds.

Ence seemed to say goodbye to hedge funds after being attacked by up to 7 hedge funds in 2020 and 2 in early 2021, according to the records of the National Stock Market Commission. But the bears are back to their old ways.

Systemtica Investments increases its siege

Systemtica Investments, a newly created hedge fund, has been in business since 2015 and entered value with a 0.5 percent equity attack at the end of October. It has just raised its position to 0.6 percent with a charge against Ence’s shares of 3.75 million euros at the current price of the securities.

The firm was founded by Leda Braga, a finance company that, among other companies, spent seven years in JP Morgan As an analyst in the derivatives investment division, he has opened Systematica offices in Jersey (head office), Geneva, London, New York, Singapore and Shanghai.

Thus, Braga now faces not only the upward climb in value, but also a favorable view of the market consensus. For example, the investment entity Berenberg has just come out in defense of Ence by ensuring that its titles they are “as cheap as wood chips to make paper”.

Berenberg gives maximum support

Investors were surprised that an international benchmark firm such as Berenberg coverage begins, with a recommendation to “buy”, in a company the size of Ence.

The analysts of the German firm believe that the current prices of paper and energy play in favor of the Galician company and give it a target price for the next 12 months of 3.80 euros, which yields a potential that is close to 50 percent.

If this price is reached, one of the highest in the market consensus, it would take the value to the levels of the end of April, the month that reached annual highs at 4.49 euros, at which point a correction of 40 percent began. cent to the current rally which reduces losses for the year to 25 percent.

The vast majority of the consensus is with Ence

Pulp prices remain at 10-year highs and Berenberg points out that high demand for paper exceeds supply, which Ence should benefit from, while energy prices will boost its biomass division

Berenberg’s vision is shared by the vast majority of the market consensus, since none of the experts included in the panel of experts from Bloomberg recommends “selling” the shares. ANDl 75 percent urge to “buy” securities and the remaining 25 percent to “maintain” portfolio positions.

The securities move at 2.5 euros with an average price target for one year of 3.70 euros, so the revaluation potential for said period greater than 45 percent.

Ence’s viability depends on the Xunta and Moncloa

But the detractors do not forget that Ence’s future hangs by a thread, after justice declared illegal the 30-year extension that the government of Mariano Rajoy awarded to the company.

The cancellation, for environmental reasons denounced by United we can, put the existence of the company in check, which caused the bearish siege of 2020 on the value, but the situation could have changed.

The president of the Xunta de Galicia, Alberto Núñez Feijóo, would be willing to expand the facilities of Puerto de Marín, a town where Ence develops its activity, and the Minister of Industry, Reyes Marato, I would also be willing to do it to achieve viability, although the final ball is also in the court of Rachel Sanchez, Minister of TTransports, Mobility and Urban Agenda.



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