The chain of Dia supermarkets is prey of strong volatility on Tuesday in the Stock Exchange. After plummeting 42.2% on Monday after cutting their earnings forecasts between 30 and 40%, the company's shares oscillate this Tuesday between large profits and heavy losses, passing in a few minutes to be the worst value of the Ibex to be the best. Shortly after the opening, another 17% dropped, leaving behind at one time the level of one euro per share. At midday earnings of more than 5% were noted, to lose everything after and left around 5% in the early afternoon.
The deterioration of Dia's business, with several years of falling sales and profits, is aggravating this year with the crisis of currencies in Brazil and, above all, Argentina. Given this, the company yesterday admitted that its operating result would be between 350 and 400 million euros, between 30% and 40% below that of 2017. Under these conditions, it is very difficult for the company to make a profit this year and already announced to its shareholders that there will be no dividends next year. The profit warning worsened up to 42.2% a fall that was already around 10% after a negative report by JP Morgan.
This Tuesday, although it could be thought of a rebound of Dia, it is not occurring, although it has feigned more than once, drawing a saw in the graphics of its quotation. Initial gains of 2% have quickly become losses of more than 17%, which have been wiped down to 9% before noon. About that time, has started an escalation that has led to profits above 5%, becoming the best value of the Ibex in the day. Then, the thunderheads have returned and, with losses of 5%, returned to the red lantern of the selective.
The top shareholder of the chain, the LetterOne fund, owned by Russian tycoon Mikhail Fridman, took the reins of the company yesterday: Ana Maria Llopis abandoned the post of president in advance – she had already announced in April that she would do so in 2019 – and her post It was occupied by Stephan DuCharme, Fridman's trusted man, who also placed a third counselor. LetterOne has 29% of the shares, on the verge of a mandatory takeover. The fall in the price may lower that offer, but if it were to present it now, it would have to pay more than 4 euros per share, the price it paid in January when it increased its participation in Dia to 25%, since the law of opas It obliges to offer the maximum price paid in the last 12 months. Once that period expired, the reference is on September 28 of this year, when it increased its participation to 29%. Then the price was two euros, double that now.