Commerzbank share: double negative

The Commerzbank share is facing a double problem. Number 1 would be the takeover fantasy which is at least currently no longer present. Because the Dutch ING is definitely no longer interested in buying Commerzbank, as a Handelsblatt article suggests. The heads of the two banks had already met months ago. Obviously the rejection of the Dutch was weeks ago. However, it was just recently made known by this article.

French and Italian banks (UniCredit) are thus becoming the focus of attention as potential buyers. But they too are said to have turned away from Commerzbank. There is really no buyer left for this bank. This bank actually has a lot to offer (a large branch network as a sales channel, lots of SME customers) if the company would be made up. In any case it is negative for the Commerzbank share that the fantasy seems to fade away from this side.

Besides that Commerzbank has been struggling for days with a real image disaster. The IT problems on the accounts of numerous customers do not seem to come to an end. They occur in payment transactions and have allegedly been solved long ago, according to CoBa. But as the analysis by finanz-szene.de shows customers in social media are still complaining and are more than dissatisfied with the bank’s apparently non-existent information strategy. Already numerous enterprises had to experience that consumer complaints in social media became proper Tornados or hurricanes. Does the bank underestimate this? Or does it not care at all? This can hardly be positive for CoBa.

Commerzbank share heading for lows?

Let’s look at the chart. Here you can see the Commerzbank share since 2015. In 2016 there was a low of 5.17 Euro. In terms of chart technology it practically shows the last barrier before the total crash into nowhere. At 5.50 Euro is the second slightly higher barrier from December 2018 (both encircled). Who had bought the stock in between times could make at least (almost unbelievably) occasionally easy 100% profit. But who exactly hits the perfect exit? The share is currently moving back towards its lows. Two supports are still there. But as with other markets the question probably applies: How much is chart technology still worth if the fundamental data and news are so much more important than a few strokes in a chart?

The Commerzbank Tower in Frankfurt. Photo: © Commerzbank AG CC BY-SA 3.0 de

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