Finally a bullish hope for GVS, one of the worst stocks of 2022
GVS shares experienced a 2022 all in the name of bearishness. So much so that they were among the worst of the entire Milanese price list. The week that has just ended, however, finally gives bullish hope for the best stock of the week that has just ended.
GVS was the best title of the week – projectiondiborsa.it
What prompted the title to be the best of the week?
The agreement reached with the creditor banks and with the bondholders to modify and adjust the financial covenants, and the majority shareholder. In this context, GVS Group has undertaken to disburse a subordinated and unsecured loan to allow compliance with the leverage ratio as at 31 December 2022.
But what is a financial covenant?
A “covenant” is defined as a type of agreement undertaken between the lenders of a company and the company itself.
The peculiarity of these agreements is that it is possible for lenders to set conditions and limitations on financing. In particular, it is possible to insert clauses that link the company to certain behaviors or actions. Should these be disregarded, it could lead to the invalidity of the foreseen loan.
In this way, through the covenants it would be possible for the lenders to reduce the risks associated with the administration and therefore the financial exposure of the assets as well as the credit risk.
Thanks to these agreements GVS will be able, without capital interventions and/or increases in the cost of currently existing debt, meet the financial commitments as at 31 December 2022. The terms and conditions of the loan will be defined in the first quarter of 2023.
After the announcement of this agreement, the stock on the stock exchange accelerated and closed the session above the psychological threshold of 4 euros, up by more than 9.5%.
Finally a bullish hope for the best stock of the week: the indications of the graphic analysis
The title GV extension (MIL:GVS) closed the session of 23 December at 4.018 euros, up 9.60% on the previous session.
Seen the downside in progress from the highs of 2021 that led to a drop of more than 80%, the current trend could only be bearish. Moreover it should come as no surprise that GVS shares are in third place, behind Banca MPS and Saipem, in the rankings of the worst since the beginning of the year.
Nevertheless, the week that just ended could have marked the bullish turning point. However, before singing victory, one must lend Attention to a very important detail. From the week of November 7 onwards, prices moved within this bar. To operateso, with greater odds in favorso, it would be better to wait for the breakout of the high and low of that week. These levels are located in the area of 5.2 euros and 2.922 euros, respectively.
GVS averages still set low
