Recommended by investment bank CaixaBI, is closing its sided triangle suggesting an imminent bounce towards 2.14 minimum. However, it has lately gotten out the triangle so we could also expect a retest on last August 2019 1.65€ level and then come back up again. Breaking downwards 1.65€ would mean going towards 1.50€ and losing momentum. Breaking upwards 2€ would mean the possibility of going towards 2.20€ (current Price Target issued by CaixaBI) or even 2.40€, in my opinion.
Trade active:
UPDATE: Watch out Mota because the bearish momentum since Dec 17 (2019) is acting as the one from Nov 17 (2015) to Jan 18 (2016). We could either face a sharp fall or it could stop around 1.479. But the truth is that this kind of fall it is experiencing now is not going to stop at 1.647, in my opinion.
Trade active:
UPDATE:
Feb 26: Lincy Lucena Vera, Contracting Operative Unit director (UOC) from the Ministry of Public Works and Communications (MOPC) from Paraguay, urges Mota to pay more than G40.000 million (€5,5 million) due to breach of the contract (unfinished works of 11 km, only 800 m of Metrobus were done). This quantity would be paid by the guarantee of the insurance policy, by the firm Royal Seguros S. in 24h.
Feb 27: Neither Mota nor the insurer respond to the charges. Sergio Coscia, General Attorney of the Republic, will bring Mota to Justice Court: “We have no problems to go to war with them”. He expressed Justice can declare a seizure to their assets in order to guarantee the payment from Mota.
Mota files two arbitration lawsuits against Paraguay, starting July 2020. Mota made profits of €24 million in 2018, and in 2019 decided to pay dividends again.
----
Personal conclusion: I expect Mota to be quite volatile and expect it to reach 1.11 and even 1.05. If 2019 profits decrease less than €20 million or EBITDA decreases, we could see 0.95 level.
Feb 26: Lincy Lucena Vera, Contracting Operative Unit director (UOC) from the Ministry of Public Works and Communications (MOPC) from Paraguay, urges Mota to pay more than G40.000 million (€5,5 million) due to breach of the contract (unfinished works of 11 km, only 800 m of Metrobus were done). This quantity would be paid by the guarantee of the insurance policy, by the firm Royal Seguros S. in 24h.
Feb 27: Neither Mota nor the insurer respond to the charges. Sergio Coscia, General Attorney of the Republic, will bring Mota to Justice Court: “We have no problems to go to war with them”. He expressed Justice can declare a seizure to their assets in order to guarantee the payment from Mota.
Mota files two arbitration lawsuits against Paraguay, starting July 2020. Mota made profits of €24 million in 2018, and in 2019 decided to pay dividends again.
----
Personal conclusion: I expect Mota to be quite volatile and expect it to reach 1.11 and even 1.05. If 2019 profits decrease less than €20 million or EBITDA decreases, we could see 0.95 level.