The last hopes that paragon would get rid of the burdens on the Voltabox subsidiary in the third quarter had been settled some time ago. And now that the fourth quarter has started, it is still unclear when paragon will sell Voltabox.
At the request of our editorial team, CEO Klaus Dieter Frers recently confirmed the ongoing sales talks for the Voltabox stake. However, these take longer due to the various restrictions surrounding the pandemic. As a result, those involved could not travel as they had hoped, which made the talks difficult and delayed. According to Frers, there are several very interested investors. That could already be heard at the autumn conference. A contract should now be signed in a few weeks. Frers expects the transaction to close in the fourth quarter
This continues to be a burden for the paragon share, as a glance at the chart shows. Paragon’s share price is currently 8.39 euros, falling more than 4 percent on the previous day and is not too far above two local lows that will clearly shape the picture in 2020 in the course of the share price: On the one hand, the corona crash low at 7.05 euros on the other hand, the local low reached at the end of June at EUR 7.75. A technical chart support in the range 8.50 / 8.66 euros, however, was just undercut. However, the associated chart-technical sell signal has yet to stabilize.
If the break remains active, paragon shares face a test of the two lows mentioned, which have occurred since March of this year. Both brands form a broad technical chart support zone – a break below this would be a massive sell signal for the paragon share. With the Voltabox sale, whenever this takes place, the title could get rid of a burden. It remains to be seen whether that will be enough to turn the trend. Until then, the trading marks remain at EUR 8.50 / EUR 8.66 and EUR 9.16 / EUR 9.28, possible trading obstacles for the company’s share price.