For who was wondering, 2021 was an excellent year for the Italian stock exchangedespite the ups and downs and the destabilizing news that, as always, are noisy.
If we read one of the latest IlSole24Ore articles in the year 2021, in fact, we find confirmation of this with very satisfactory data:
“The Italian stock markets are back on track after the 2020 freeze due to the acute phase of the health emergency. In the course of 2021, the capitalization of Piazza Affari jumped by 24.7% to 757 billion, for a weight on GDP that has risen to 43.1% from 37% in 2020. “
Excellent data for a recovering market.
However, Saipem sharesdespite some sessions that have seen them at the head of Piazza Affari, they took a direction that ranand continue to do so today more than ever, along a sustained bearish trend. In September 2021, Milano Finance reported one of the most interesting performances of the stock:
“On a very positive day for Piazza Affari (+ 0.91%), Saipem gains 3.92% and reaches € 2.069, benefiting not only from the market trend but also from the OPEC report published in the afternoon, as well as ExxonMobil’s discoveries in Guyana. “
Obviously the optimism of some readers and supporters of Saipem had made its way after such a day, but the joy did not last long because at the end of October it again marked a decline, this time equal to 11%.
The collapse is sharp, making Saipem shares the worst in the FTSE MIB index.
On SoldiOnline you can clearly read the reason, or at least the causes that would have led to this loss:
“The company disclosed the results for the first nine months of 2021. The period in question closed with a negative final result and a contraction in revenues (despite a recovery in turnover in the third quarter), mainly due to the lower volumes developed in the Offshore Engineering & Construction division. “
The news creates an unpleasant atmosphere surrounding Saipem shares, marking the beginning of a period that would not have ended well, on the contrary things get worse until reaching the gates of 2022 with a hint of recovery that ends with another thud more serious.
Saipem shares were traded at 1.83 euros on January 1, 2022 to reach the end of the month for only 1.32 euros.
A decisive collapse that leads the company and investors to tremble. Let’s see what to expect from the well-known Milanese group and what are the reasons that could still push investors to buy.
Saipem is a joint stock company that has been operating in the infrastructure and energy sector for almost seventy years.
Well known all over the world and listed on Piazza Affari, it operates in over 60 countries with Eni Spa and CDP Equity Spa behind it.
Being in the midst of the energy transition, Saipem is at the forefront, as it also writes on its official website:
“We at Saipem are pursuing diversified actions in order to drive the energy transition along four pillars: renewable energy, the decarbonisation of carbon-intensive industries, the conversion of biomass, the circular economy and hydrogen.”
Basically its job is to distribute energy and this is where we read the usual recent problemsamong the most common to all these large companies: the increase in the cost of raw materials combined with difficulties in procuring essential resources.
This should push supporters of the energy transition to favor a purchase that can support its recovery path, but money does not mind good intentions, at least not everyone’s.
Saipem’s ideas were many, including the development of new technologies in the face of decarbonisation and international agreements. The company was aiming for the future, perhaps just what you can’t see for it right now.
But why was it especially her who fell?
At present, expert analysis says that continuing on the bearish line is the most popular option.
Nothing suggests a possible rebound, also because the descent now continues in a sustained way.
In the last month alone we have seen a drop of 38.8% and traders have seen two resistances, one just below 1.30 and another at 1.43 while a bearish target is observed by many speculators on the 1.10 level.
In this regard, we read among the various opinions those of Borsa.Quifinanza, very detailed and easy to understand even for beginners:
“The technical picture of the Italian engineering company signals a widening of the negative trend line with a descent to the support seen at 1.155, while on the upside it identifies the resistance area at 1.296. The forecasts are of a possible further decline with a target set at 1.104. “
Today the exchange of Saipem shares takes place around 1.13 euros, but we consider that until a month ago the price was around 2.00 euros.
A frightening decline that leaves the market and investors speechless, despite the bearish trend continuing from 2019 in a more than sustained way, having lost 53.37% in the last year and 69.54% in the last 5.
Among the most varied reasons for the collapse of Saipem shares there are certainly those already listed above, such as the contraction in revenues in 2021 and the difficulty due to the increase in the prices of some resources.but that’s not all.
The date of the most nefarious and recent collapse of Saipem shares is in fact that of January 31, 2022 when the company takes a downturn in sales for a variety of reasons that can be read on Investing.com:
“The company collapses on the stock market after the audit for 2024 decided by an extraordinary board of directors held over the weekend: accounts in the red for 2021, turnover below forecasts for over one billion euros and appeal to Eni shareholders (MI : ENI) and Cassa Depositi e Prestiti for an urgent injection of liquidity. Result: from the start of trading, the stock initially fails to make a price, at the time of registration it loses more than 28%. “
This event could not help but amaze, despite the already difficult situation that saw the big company navigating the most varied problems.
What is certain is that the descending parable of this Italian excellence, which had already begun more than two years ago, is approaching its conclusion, for better or for worse.
Saipem shares attempted a timid rise at the beginning of the week, but the week ended negative anyway.
We know how incurable some optimists are and some speculators say that it is not over yet for Saipem.
Indeed, some traders argue that this is a good opportunity to buy Saipem shares and wait for another growth that could coincide with some “aid” granted to the Milanese group.
The first news, which is reported by Wall Street Italy, talks about the possible intervention of Saipem’s majority shareholders:
“To support this delicate moment, the main shareholders, Eni (first shareholder with 30%) and Cassa Depositi e Prestiti (12.5%), also took the field.
It would be unthinkable to heal such a wound without them and it is certainly urgent to recapitalize with the commitment of new loans that can allow a slow but steady recovery.
L‘other news that gives some shareholders hope is that reported instead on Ansa.it, which mentions the replacement of Francesco Caio with Alessandro Puliti as the new general manager of Saipem in terms of renewal and management improvements:
A “strategic review”, the one implemented by Saipem, which will be presented together with the economic results of 2021 on February 24, which in addition to a “new general management with extensive operational and managerial powers”, provides for the establishment of a unit aimed at “strengthening the planning and financial control of contracts and other management activities” and the concentration of legal and contractual activities in a “corporate function within the new general management”.
Two reasons that are subject to different interpretations, but that they like them and continue to keep some investors’ morale high who still want to bet on Saipem shares, despite the crisis that has engulfed the company.
Many investors will be troubled by the same doubt, but if you look at the data and the history of the Italian group, one certainly cannot hope for an immediate rise. it is necessary to wait and trust in the planned interventions.
Betting on Saipem shares before the end of February, when there will be the new corporate event, seems like a mistake, but everyone is free to draw their own conclusions, as always. Although perhaps it is better to wait and really evaluate a purchase.
The stock can still have momentum, despite the critical conditions in which it finds itself, thanks to the price and possible interventions which appear to appeal to confident investors.
Certain, at the moment the most probable direction seems to be bearishwith a decline supported by many analytics and speculators, but we can expect vigorous support from the two partners already mentioned above which could rebuild shareholder confidence.
On Startmag their role is emphasized precisely because it could be decisive:
“” Given the importance of the company for the Italian economy, “write the analysts of Moody’s, Eni and CDP, they could support it, guaranteeing its long-term profitability and avoiding default within the next year and a half.”
Let’s keep up to date on the trend to observe the next changes in the scenario that could support a thesis that aims at the purchase of Saipem shares.