History of FCC, current context and fundamentals

FCC was formed after the merger of two companies in 1992, Construcciones y Contratas, founded in 1944, and Fomento de Obras y Construcciones, year 1900.

It is one of the largest construction companies in Spain and Europe, based on the fact that the most powerful companies in Spain are dedicated to this sector and more than 75% of capitalization of the Spanish selective companies are construction companies, energy and banks.

It is mainly dedicated to the construction of industrial infrastructures, the production of cement and equipment in cities as well as renewable energies. This has a lot to do with Acciona and Abengoa, however the percentage is much lower in its portfolio of projects and does not have as much presence in the countries where these two operate. In December 2014, FCC would be forced to make a capital increase to clean up its balance sheet, an occasion that took advantage of businessman Carlos Slim , one of the richest men on the planet (the richest before the last technology bubble in the USA) to get hold of most of the shares and have control over FCC.
In fact, the shares are currently formed by the same and by Esther Koplowitz, the highest shareholder previously.

Here I present the data of fundamentals that I think are most important:

• Capitalization: In effervescence after the acquisition of the company by Carlos Slim.
• Net Profit: In full recovery after 2013.
• EBDITA
• PER:

If we look at the table we see how the capitalization of the company has increased fivefold since the acquisition of the company by Carlos Slim. In the first months after changing ownership the share price was stable and shares were being bought by the owners, as it was expected that the value would not change without profitability until there was new news.

However since then due to the few actions that are in play by funds, agencies and minority with any small movement of these the value began to move up to reach the almost € 13 that are worth today.

Technical analysis

The long-term chart shows the evolution of recent years where after the fall after the crisis of 2014 would come a new fall would come a second fall in mid-2015. I myself invested that year around € 6 coming out at € 7. Although it seems that it was very clear that it was going to fall, it was very difficult to predict when it was going to stop . Since it was showing exhaustion salesman and did not reach the final support around 4.5 - 5 € if not the minimum was at € 5.6. From then on rumors of the OPA would begin to come and the price would start to fluctuate. Until the announcement became official. It is not at all brazen to think about this value that from the middle of the 2014 downturn, Slim's funds would be collecting all the paper that other funds and retailers were releasing. Especially from the announcement of the capital increase to achieve large capital gains in the future.

The fact is that as of August 2016, the FCC price would start to move and there would be three attempts to raise the price with the support of most of the shares, at € 7.5. Having approached the € 10 on the second attempt, a revaluation of almost 50%. But these risers were given to avoid the entry of opportunists and trying to get rid of them. The third would break the resistance of € 10 and has recently reached € 13. From September 2017 to September 2018 it would suffer a rise of almost 80% . Being a value of the IBEX35 supposes a disproportionate rise, and partly it has to do much with the plays of the Mexican magnate. Moving not many shares has managed to be in these prices that is a bit virtual anyway because it is overvalued, because if you get rid of only 10% of the shares in a short period of time, the price could go back to € 7 easily .



Analyzing the stock in the short term we see how the resistance is currently slightly above € 13.5 and from there the resistance will go directly to € 16. The behavior of the company is quite good, improving year by year, although for me this company is overvalued. To have in portfolio would not be a bad idea knowing that this almost entirely is in the hands of Slim with what there can be a debacle for an international event, but among other Spanish construction companies that I am analyzing I lean more for ACS or Acciona. Specifically in the short term more by ACS .