CRCEO.BA
🚨 The stock experienced a dramatic 38% drop following a credit rating downgrade, highlighting the significant risks associated with lower-quality corporate bonds (ONs).
📉 The downgrade suggests concerns about the company’s solvency and financial health, leading to a rapid sell-off as investors reassessed the risk.
⚠️ Investing in less transparent companies like Celulosa carries higher risk, as lack of information and lower credit quality mean higher potential volatility and default risk compared to well-known firms.
@marcosemmimfp:
“How is Celulosa doing? It died. Yes, look, I remember it went up, up to here, and yesterday, boom, it dropped. How much did it drop? 38%. Recommended exit. If I hadn’t bought this, for example… The problem with entering these ONs (Obligaciones Negociables) is what? Since they don’t have a good rating, they pay more, meaning the rate has to be higher. Okay? … What happened to that company? They lowered its credit rating. They basically grabbed it and said they didn’t have much solvency, and well, that’s why they lowered the rating, and that’s why people, I think, got scared and sold everything, sold part or a large part of the position.”
Watch the exact part of the video where @marcosemmimfp talks about Celulosa Argentina S.A. here:
Watch the video on YouTube
Read more articles analyzing Celulosa Argentina S.A. (CRCEO.BA) at the provided link. CRCEO.BA stock.