My trading idea for Freenet AG - Buy/Long via Limit Order
Entry: 20.00 EUR
Target: 26.00 EUR (30%)
Stop: 18.50 EUR
Freenet is considered a dividend jewel and has also demonstrated itself to be a stagflation-proof stock in recent months. Since the beginning of the pandemic, it went steadily upwards, with some occasional sharp pullbacks.
Most recently, the share price collapsed again. It was to be expected that there would be a stronger correction due to the announced dividend cut (1.57 EUR per share). At the end of the trading day, it was much more than a corecture. The share plunged 17% after a critical outlook from the Swiss bank UBS. The bank issued a sell recommendation, as it no longer considers the mobile reseller business profitable in the long term. The reasons for this are rising reseller fees, increasing data consumption by end customers and that network operators are strengthening their own marketing channels. Last but not least, there is also the threat of regulatory problems with the Federal Network Agency. However, the time has not yet come and a further recovery in the share price seems probable. I am aiming for a new high for the year.
Entry: 20.00 EUR
Target: 26.00 EUR (30%)
Stop: 18.50 EUR
Freenet is considered a dividend jewel and has also demonstrated itself to be a stagflation-proof stock in recent months. Since the beginning of the pandemic, it went steadily upwards, with some occasional sharp pullbacks.
Most recently, the share price collapsed again. It was to be expected that there would be a stronger correction due to the announced dividend cut (1.57 EUR per share). At the end of the trading day, it was much more than a corecture. The share plunged 17% after a critical outlook from the Swiss bank UBS. The bank issued a sell recommendation, as it no longer considers the mobile reseller business profitable in the long term. The reasons for this are rising reseller fees, increasing data consumption by end customers and that network operators are strengthening their own marketing channels. Last but not least, there is also the threat of regulatory problems with the Federal Network Agency. However, the time has not yet come and a further recovery in the share price seems probable. I am aiming for a new high for the year.