Three major groups in schematic red

Three major groups in schematic red

By Apostolos Manthos

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

In addition to the three stocks listed below, our numerical algorithmic “researcher” also shows Attica Bank, at €558 million capitalization, but the truth is that we will treat this bank more seriously when the investment company Thrivest Holding Ltd, interests of entrepreneurs etc… D. Baku, G. Kaimenaki and A. Exarchou control 51% of the new bank. So yes, it will be really 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-Weekly price chart peaked very sharply in the €25.82-€25.70 area and was then forced into a strong bearish retracement towards the all important support zone. 21 to 20, 80 euros. This is a level that should not be crossed downwards, as it will have the ability with the approximately 33 million shares traded above it to bring the share price back above the low mark. 18.80 euros, or almost -11% compared to yesterday’s close at 21.14 euros.

On the other hand, broad support in this area will push the share price above the schematic €23 level, giving the buyout to beleaguered buyers. Of course, the fundamentals of the strongly exporting group, where 79.48% of the total volume of sales leave the country, can in no way subscribe to the aforementioned downward movement towards 18.80 euros. A group that has brought the profitability of EBITDA to 1.692 billion euros for 2022, can hardly justify a capitalization of less than 2.5 billion euros (today 2.34 million euros), and even less a share price which gives a capitalization of approximately 2 billion euros. After all, on June 26, he also cut the dividend by 1.20 euros per share, which corresponds to a dividend yield of over 5.6%. And of course, let’s not forget the promising subsidiary MORE (Motor Oil Renewable Energy) which is dynamically active in clean energies, while there is also this gigantic investment plan until 2030, with a budget of 4 billion euros, at all costs you want to hide it, you can’t it’s done The work of the “Bears” is difficult.

Next comes Lamda Development (LAMDA) which, according to yesterday’s closing price at 5.54 euros, has now reduced its capitalization below 1 billion euros and more precisely to 979.1 million euros, in the same time whose Net Asset Value (ANR) reached 1.36 billion. euros at the end of 2022, i.e. 7.78 euros per share. Here, something is wrong with the stock, which not only cannot keep up with the momentum of the rest of the market, but is also starting to show signs on chart analysis that are not just positive.

At first he “struggles” with a total volume of more than 5.5 million shares and for more than 56 days to break up the moving average of 200 but, despite his best efforts, he does not succeed. not, further weakening buyers and more. Secondly, and most importantly, the stock seems to be breaking out of the very dangerous €5.50-€5.45 support zone, but not to hold and react strongly on the upside but to break it on the downside, now heading towards 4, 84 euros. We are talking about the possible bearish bypass of an extended support zone that encloses more than 430 days, the one that has formed since February 2022. A brutal change of scenery only with the breakaway on the rise of the toll at 6 euros. 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 end with the EYDAP sharing, which made us… wet. He broke down into general index years of 1,136 units the huge EUR 6.32 support zone, on which there have been five very significant lows over the past three years. Imagine that below there is almost nothing at the bottom of the panic of the pandemic crisis at 5.16 euros. The immediate issue here is nothing other than the immediate renegotiation of the share price above, at a minimum, 6.50 euros. Only then can we safely dry our wet clothes. As we have said, water remains a public good, but a company cannot bear the full burden of energy costs without “being able” to transfer it to the consumer. It is not possible for the proper functioning of a company to charge a 98% increase in the cost of electricity supply, from 22.9 million euros in 2021 to 45.5 million euros, and to pass nothing on to the client, at the same time as EYDAP has to increase its pricing policy for 13 full years.

In addition to this, it must achieve a high project investment program of 45.9 million euros in 2023. In the end, however, the net fund of 322 million euros, if combined with the lower energy prices and the new pricing of EYDAP’s services by the Waste, Energy and Water Regulatory Authority (RAAEY .), will again drive the stock up towards the Vwap of the four years, to 7.44 euros in the medium term.

* Apostolos Manthos is responsible for technical analysis and investment strategy

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