Thndr Claps
  • U.S.
  • Egypt
  • Saudi
  • Thinkers
No Result
View All Result
Thndr Claps

Thndr Claps » Thndr Thinkers💭 » Investment » AMOC: a long term investment opportunity

AMOC: a long term investment opportunity

by Thndr Thinker
November 29, 2022

We can’t deny that the EGX in the last months was mainly for speculation, a direct result of:
– Down-trend in March 2020 – COVID 19 –
– Followed by a horizontal movement between 9800 – 11700 level from April 2020 till March 2022
– Then a down-trend from March 2022 till October 2022

During this period, it was common to assume that the Egyptian market is not suitable for long investment.

While that may be true, I will give you insight on one of the value stocks suitable for long term investment.

Alexandria Mineral Oils Co. (known as: AMOC) is a public company, listed on Egyptian Exchange (EGX) since December 2004. AMOC operates within the coal & consumable fuels sector focusing on energy. AMOC is based in Alexandria, Egypt and was established in May 1997.

Why keep AMOC in your portfolio?
1- AMOC has been in an up-trend since March 2020 – COVID 19 pandemic.
2- Taking into consideration all the obstacles that faced the market during 2021 and the H1 2022, keeping an up-trend is a very positive indicator for AMOC.
3- As per one of Charles H. Dow’s main statements “Trends Persist Until a Clear Reversal Occurs.”
4- AMOC is included in the EGX30 index with a weight of 1.5%.
5- AMOC distributes dividends in the form of cash or free shares, giving investors a secondary source of income.

I will quote the following points from a new post written by Dr. Hany Genena:
– There might be an opportunity for price explosion in the short term.
– The share price has fluctuated between EGP 3.5 and EGP 4 since the beginning of the year, although the price of one of the company’s main products – diesel, which represents 26% of sales – is trading globally near the highest levels as a result of a gap in global supply and the closure of some refining factories in Europe.
– In Q2 of the current fiscal year (October to December 2022), the company is expected to hit a new profits record as a result of
– The rise in the price of diesel globally despite the drop in the oil price, which increases the profit margin (crack spread)
– The rise in the price of the dollar against the EGP has been strong since October, which benefits the company directly because all its products are priced in dollars.
– The company recorded profits of around EGP 1 billion pounds in the last fiscal year, and recorded profits amounting to about EGP 400 million in Q1 2022/23, even before the global diesel prices and the EGP devaluation occurred in Egypt.

From the movement of the stock, I believe that it has not yet responded to these factors, and there may be an opportunity to achieve a return of up to 15-20% as a result of the movement in the stock price towards the level of 4.75-5 EGP before the next earnings release.

Currently, the share is at EGP 4.75, but I still believe there is an opportunity to capture gains from AMOC.

According to http://www.Investing.com the company have the following figures:
– Market Cap 6.02 B
– P/E Ratio 5.04
– Shares Outstanding 1,291,500,000
– Revenue 12.27 B
– Dividend (Yield) 0.55 (11.7%)
– Beta 0.861
– 52 wk Range 3.21-4.87
– 1-Year Change 27.03%

Ownership
• Alexandria Petroleum Co (20.774%)
• Al Ahly Capital Holding Co (17.44%)
• Misr Capital (8.658%)
• Misr Insurance Co (5.479%)
• Social Insurance Fund for Governmental Sector Employees (5.16%)
• Social Insurance Fund for Public and Private Sector Employees (5.00%)
• Misr Life Insurance (4.54%)
• Co-Operation Petroleum Co (3.57%)
• Misr Petroleum Co (3.57%)
• National Bank of Egypt Employees insurance Fund (0.0058%)

As you observed the list of shareholders contains some of the reputable financial institutes in Egypt which reflect the strength of the company and its performance.

This was not written by Thndr and this is not investment advice, you should do your own research before making investment decisions.

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related Posts

Navigating the Challenges and Opportunities: How Fintech Companies in Egypt are Adapting to Currency Devaluation
Thndr Thinkers💭

Navigating the Challenges and Opportunities: How Fintech Companies in Egypt are Adapting to Currency Devaluation

by Thndr Thinker
January 23, 2023
ORWE’s carpet flies & pays dividends too
Thndr Thinkers💭

ORWE’s carpet flies & pays dividends too

by Thndr Thinker
November 26, 2022
The stock that never loses
Thndr Thinkers💭

The stock that never loses

by Thndr Thinker
October 24, 2022
How to invest small amounts in the stock market
Thndr Thinkers💭

How to invest small amounts in the stock market

by Thndr Thinker
October 18, 2022
When looking at a company, the best ratio is ………………???
Thndr Thinkers💭

When looking at a company, the best ratio is ………………???

by Thndr Thinker
October 15, 2022

Website

Community

Blog

Learn

© Thndr. All rights reserved

No Result
View All Result
  • U.S.
  • Egypt
  • Saudi
  • Thinkers

Disclaimer: Thndr does not provide investment advice, individual investors are responsible for their own decisions or can seek independent advice. The value of investments can go up and down. Thndr is a trading name of Thndr Securities Brokerage which is authorised and regulated by the Financial Regulatory Authority (FRA). Registered in Egypt (no. 804)..© Thndr. All rights reserved

 

Hello👋 We want you to be able to express your opinions on anything and everything finance and economics related to the Egyptian and US markets.

This is why we introduced Thndr Thinkers💭

Let’s go through some housekeeping notes before you jump into publishing your article to all Thndr Claps readers!

Type of Content📝 We want to see market-relevant content that shows good analysis, please! Base your articles on facts 

Don’t be shy, explain🗣 Flex your knowledge to us, and we’ll share it with all the readers!

Be Original🙏 Please don’t copy. No one likes a copycat. All submissions are welcome as long as they’re yours 

Make your title attractive🤩 A title is like the cover of your book. Attractive enough to make you look at the book but also clear enough to tell you what the book is about.

Clean🧹 We’re all humans and we all make mistakes. But please try and clean up the article so it’s clear for all the readers 

No promotional content🚫 We don’t publish promotional content.

Any questions about becoming a Thndr Thinker? Email thndrclaps@thndr.app and we’d be happy to help!

Normally, your article will be published within 24 hours of submission (if you followed the guidelines)