Electric Stocks – December 2022⚡

We’re excited to share with you our December 2022 top picks based on factor investing!

December’s picks saw the exit of GB Auto (AUTO) & Obour Land (OLFI) out of the top 10 after making it to the list for several months in a row now. Another exit was Telecom Egypt (ETEL), which just missed the cut. These three companies were replaced by Cairo for Real Estate Development (CIRA), Orascom Development (ORHD), & new Electric Stocks debutant AT Lease (ATLC).

News Scan
All ten companies passed our news scan, where we scan for news that could potentially have negative sentiment effects on the stock.

Last month’s performance
The EGX30 outperformed Electric Stocks for the month of November 2022, with the former recording 16.50% versus Electric Stocks’ 12.26%.

Technical Analysis Commentary

MFPC

• The stock is moving in an upward trend over the medium term.
• The stock achieved all targets announced last month, exceeding 17% in returns.
• It is preferable to hold the stock as long as it’s above the EGP 126.00 level.
• If the level remains above 126.00 EGP, the next target will be 134.00 EGP, then 147.00 EGP.
• Take profit or stop losses if the stock closes below 126.00 EGP.

EKHOA

• The stock is moving in an upward trend over the medium term.
• The stock achieved all targets announced last month, exceeding 15% in returns.
• Hold the stock as long as it’s above the EGP 29.00 level.
• As long as it is above EGP 29.00, it targets EGP 31.00, then EGP 33.00.
• Take profit or stop losses in the event of a decline below EGP 29.00.

JUFO

• The stock is moving in a sideways trend over the medium term between EGP 6.50 as support and EGP 8.00 as resistance.
• A breach of EGP 8.00 qualifies the stock to reach 8.75 EGP.
• The stop loss level is EGP 6.50.

ABUK

• The stock is moving in an upward trend over the medium term.
• The stock achieved all targets announced last month, exceeding 26% in returns.
• Hold stock as long as it is above the EGP 32.75 level. If it falls below this level, it is preferable to take profit immediately by 50%.
• If the stock remains above the EGP 32.75 level, it qualifies the stock to target EGP 36.00, then EGP 38.75, and finally EGP 42.00.
• The stop loss level is at EGP 30.00.

ORHD

• For a month now, the stock has been in a sideways trend between EGP 5.70 as support and EGP 6.60 as resistance.
• Take profits or stop losses if it breaks and closes below EGP 6.15.
• Buy more if the stock breaches EGP 6.60; the target then becomes EGP 7.00, and then EGP 7.80.

ORWE

• In the medium term, the stock is in an upward trend.
• The stock hit all last month’s targets, recording 12% gains.
• Take partial profit by 50% at the level of EGP 8.50.
• Stop losses or take profits if the stock falls below EGP 8.20.
• Buy once again if the stock settles above EGP 8.75, with a target of EGP 9.30, then EGP 9.75.

SUGR

• The stock is in an upward trend; hold as long as it is above EGP 17.30.
• The stock hit all of last month’s targets, recording 5% gains.
• The current target is EGP 19.00, and the next is EGP 20.50.
• If the stock declines below the level of EGP 17.30, it is preferable to take profits.
• Stop loss if it breaks and closes below EGP 16.20.

CIRA

• The stock is in an upward trend.
• Take profits or stop losses if it breaks and closes below EGP 12.70.
• Buy more if the stock breaches EGP 13.75; the target will be EGP 14.25, then EGP 15.30.

ATLC

• Over the medium term, the stock is in an upward trend.
• Take profits or stop losses if it breaks and closes below EGP 3.50. Otherwise, it is preferable to hold.
• Buy more if the stock breaches EGP 3.80; the target then becomes EGP 4.20, then EGP 4.50.

CLHO

• The stock turned to the upside last October and is currently moving sideways between support EGP 4.40 and resistance EGP 4.80.
• Take a 25% position as long as it is above EGP 4.40.
• Increasing position to 50% if it exceeds and stabilizes above EGP 4.80.
• In case of exceeding EGP 4.40, it will target EGP 5.20, then EGP 5.40.
• Stop losses in the event of a decline and close below EGP 4.40.

It is important to note that fundamental factors explain returns over a long investment horizon. Speculative stocks, in contrast, may significantly outperform fundamentally solid stocks in the short term despite the absence of any understandable catalysts.

Disclaimer: This is not investment advice. You should do your own research before making any investment decisions.