Following our post last week reporting that eight of the top ten heavyweight companies in Spain are trading below their book value, here is one more chapter: Spain’s IBEX is trading today below the March 2009 closing lows as it is almost back to levels not seen since Q3 2003.

 

Bull or Bear?

Bull (Fabio Kanczuk): “… I don’t fully know the 35 Spanish companies that comprise the index, but I think the market is exaggerating. I’ll [buy and] put a stop to 20% below the value that I am buying at.”

Bear (Drunkeynesian): “It seems a typical value trap, I think it will break through its lows with relative ease. I would only buy after the panic.”

Others like Cam Hui say that there is not enough panic to buy yet:

“Now that we are nearly at support on the Spanish IBEX 35 Index, my inner trader tells me it’s too early to be buying. We need to wait for more pain and panic to materialize. My inner investor says that signs of value are starting to show up in a number of natural resource sectors and it’s time to start accumulating positions in resource cyclicals.”

Here are the largest IBEX companies:

What do you think?

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