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What I Need to Know to Make a Profit on Renault Stock

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Renault Alpine A110 1600S

Renault S.A. is a French automotive corporation. It was founded in 1898 by Louis Renault. The company is headquartered in Boulogne-Billancourt, in the suburb of the French capital. As of today, Renault S.A. manufactures cars, electric cars, sport cars, vans, trucks, buses and prototypes.

Renault stock are traded on the Euronext stock market under the ticker RENA.PA

Quotes of Renault stock directly depend on the total revenue made by the company. Analyzing the company, you should have in mind not only revenue made by Renault S.A., but also by its subsidiaries. They are as follows

  • Romanian automaker Dacia
  • SAS
  • Nissan Motors

 

You can find revenue reports, strategies and plans of the company on the official website, in the investor relation section:

http://group.renault.com/en/finance-2/analysts-investors/

Along with car production, Renault S.A. buys other automakers’ shares to expand its production facilities. This allows the company tomanufacture cars near sales markets and reduce expenses on shipment.  This policy has a positive impact on the company stock.

espace-2015Along with close proximity to the sales markets which ensures cost reduction, mergers and acquisitions of other automakers allow Renault S.A. to considerably increase production output and hence its revenue. An increase in production output is a positive factor.

Negative factors include faults in car production and various defects. The above said events incur financial losses to the company and have a negative impact on its share quotes.  

For instance, recently Renault had to recall around 400, 000 Clio and Kangoo cars because they might have problems with a brake system. The company stock fell by 2% that day.

You can follow similar news that may influence quote of Renault stock on the analytic websites like

 

One more negative factor is the policy pursued in the countries to which Renault ship its cars.  An increase in import duties means that the company gets lower revenue.

To ensure a rise in the company stock, Renault S.A. has to compete successfully with other automakers. To beat business competitors, the company conducts advertising campaigns. It’s important for the company tohave decent expenses on advertising campaigns. If a company conducts advertising campaign that doesn’t produce an expected effect this points out to the fact that management made bad decisions and wrong actions.

stock-RenaultInvestors buying Renault stock should have in mind that an increase in the company stock quotes can result not from some fundamental factors but provoked by investors. If investors’ trust to the company grows, they start buying shares actively, and this makes the company stock rise. A trader has to understand that this may result in overestimation of the company. Overestimation means that the price of a share is much higher than it really is.  Once investors understand this, they start selling shares which results in a decrease of the stock price.

Undoubtedly, a trader has to follow revised version car releases, in particular, the bestselling models because revised versions of the bestselling models may push up stock.

Renault shares are quoted in the Euro and hence depend on the Eurozone’s economy.   A significant rise of fall of the Euro exchange rate influence the company, and they become attractive to investors.

Political events mal also influence the company.

For instance, Ukrainian crisis and sanctions against Russia entailed a loss in revenue of the European automotive companies.

Where and How to Buy Renault Stock?

buy stock-RenaultYou can buy Renault stock on the pan-European stock exchange spanning Belgium, France, the Netherlands, and Portugal. To buy Renault stock, you need a huge capital and much time because investment in shares returns on average around 10% per annum.

This is why I prefer to invest in binary options on Renault stock because they return at least a 70% profit in a set period, say, in 20 minutes.

To make a profit on an option, you need to pinpoint whether the price will rise or fall during a specific period. If the price behaves in line with your forecast, you get an immediate payout.

Few brokers offer options on Renault stock, this is why I deal with AnyOption, the top, most reliable and time-tested binary option broker. It has a long list of underlying assets including stock of Amazon, Noble Energy, Telefonica etc. The broker is regulated by the EU institutions, CySec, CONSOB  etc.

So, I browse the broker’s page and choose an underlying asset, that is, Renault stock. Then, I set time of expiration to 12:30 p.m. the amount investment and click on the CALL button because I expect the price to rise:

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It’s 11:57 now, and the option expires at 12:30 p.m. which means that I invest for a period of 33 minutes. The positive figures on the Eurozone economy support all European assets. Even if this trend is short-term, this time is enough for me to make a profit on it, and I think it will not change next 33 minutes.

If the stock rises in line with my forecast at least by a pip during this period, I will make an 80% profit.

Now, it’s 12:36.  The option has expired, and I check the result on the broker’s website:

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Renault stock have risen, and I’ve made an 80% profit or $108.

Any of you can make money on the shares of the world’s top companies due to options because unlike trading on a classic stock market, they are really affordable to everyone.

 

By saying ‘affordable’ I mean not only low requirement to a starting capital but also easy and fast sign up on a broker’s website.


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