Three large groups in schematic red

By | May 16, 2023

By Apostolos Manthos

With intense schematic difficulty we identify the actions of three large groups that have a capitalization of more than 500 million euros. Remarkably, all three groups have lost 15% of their value in the last quarter, setting a tone of intense near-term concern ahead.

Along with the three shares listed below, our digital algorithmic “investigator” also shows Attica Bank, with a capitalization of €558 million, but the truth is that we will treat this bank more seriously when the investment company Thrivest Holding Ltd, business interests etc. D. Baku, G. Kaimenaki and A. Exarchou now control 51% of the new bank. So yes, it will be very interesting.

So I’ll start with Motor Oil (MOH) stock, which will announce first-quarter 2023 financial results on May 30. So here we see that the action on the bi-monthly price chart has made a very sharp peak in the €25.82 to €25.70 area and then has been forced into a sharp bearish pullback towards the very important support zone. from 21 to 20, 80 euros. It is a level that should not be broken down as it will have the ability with the roughly 33 million shares traded above it to push the share price above the €18.80 mark, or almost -11 % since yesterday’s close of 21.14 euros.

On the other hand, broad support in this area will push the share price above the schematic €23 level, thus giving embattled buyers redemption. Of course, the fundamentals of the strongly exporting group, where 79.48% of the total volume of sales go outside the country, cannot in any way subscribe to the aforementioned downward movement towards 18.80 euros. A group that had an EBITDA profitability of 1,692 million euros by 2022 can hardly justify a capitalization of less than 2,500 million euros (now 2,340 million euros), much less a price that gives a capitalization of around 2,000 million euros. After all, June 26 also cuts the dividend of 1.20 euros per share, which corresponds to a dividend yield of more than 5.6%. And of course, let’s not forget about the promising subsidiary MORE (Motor Oil Renewable Energy) which is dynamically active in forms of clean energy, while there is also this gigantic investment plan until 2030, with a budget of 4 billion euros. , no matter how hard you want to hide it, you can’t. The work of the “Bears” is difficult.

It is followed by Lamda Development (LAMDA), which, according to yesterday’s close at 5.54 euros, has now lowered its capitalization below 1,000 million euros and more specifically to 979.1 million euros, while its Net Asset Value (NAV) reaches 1,360 million. euros at the end of 2022, that is, 7.78 euros per share. Here, something is wrong with the stock, which is not only unable to keep up with the momentum of the rest of the market, but is also beginning to show signs on chart analysis that are not only positive.

At first he “struggles” with a total volume of more than 5.5 million shares and for more than 56 days to break above the 200 SMA but, as hard as he tries, he fails, weakening more and more the buyers. further. Secondly, and more importantly, the stock seems to be exploring the very dangerous support zone of 5.50 to 5.45 euros, but not to hold and react strongly to the upside, but to break it to the downside, now heading towards 4 €84. We are talking about the possible bearish avoidance of an extended support zone that contains more than 430 days, formed since February 2022. A sudden change of scenery only with the upward flight of the 6 euro toll. This really begs the question, do sellers know something the market doesn’t or do they just think they know something the rest of us don’t?

I close with the action of EYDAP, which made us… wet. It has broken down into the General Index years of 1,136 units the huge support zone of 6.32 euros, on which five very important funds have been registered in the last three years. Imagine that below that there is almost nothing until the bottom of the panic of the pandemic crisis at 5.16 euros. The immediate question here is nothing more than the immediate renegotiation of the share price above, at least, 6.50 euros. Only then can we safely dry our wet clothes. We said that water is still a public good, but a company cannot bear the full burden of energy costs without “being able” to pass them on to the consumer. It is not possible for the proper functioning of a business to charge a 98% increase in the cost of electricity supply, from 22.9 million euros in 2021 to 45.5 million euros, and not pass it on to the customer, at the same time that EYDAP has to increase its rate policy for a full 13 years.

In addition, it has to carry out a high investment program in projects of 45.9 million euros in 2023. In the end, however, the net fund of 322 million euros, if combined with the fall in the prices of the energy and the new costing and pricing of EYDAP services by the Waste, Energy and Water Regulatory Authority (RAAEY), will once again push the stock market. towards the Vwap of the last four years, at 7.44 euros in the medium term.

* Apostolos Manthos is responsible for technical analysis and investment strategy

Leave a Reply

Your email address will not be published. Required fields are marked *