We’re excited to share with you our January 2023 top picks based on factor investing!
January’s picks saw the exit of Juhayna (JUFO), Delta Sugar (SUGR), Cairo for Real Estate Development (CIRA), & Cleopatra Hospitals (CLHO) out of the top 10. These four companies were replaced by Rameda Pharmaceuticals (RMDA), our 3rd top pick in January 2023’s electric stocks, GB Auto (AUTO), Edita Food Industries (EFID) & Emaar Misr (EMFD).
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
Last Month’s Electric Stocks outperformed the EGX30 during the month of December 2022, with the former recording 12.40% versus the EGX30’s 10.10%.
Performance since inception
We’ve been tracking the performance of our Electric Stocks, which uses a factor investing methodology, since its inception back in June 2021.
Since kicking off Electric Stocks, if you had invested equally in each month’s picks you would have made a 48.40% return versus a 42.56% return on the EGX30 over the same period.
ABUK
- The current trend is sideways, between the levels of 29.50 EGP and 37.00 EGP, and it is preferable to take profit by 50%.
- The stock achieved all targets announced last month.
- It is preferable to keep the stock as long as it is above 37.00 EGP.
- Buying again after breaching EGP 39.00 and stabilizing above, the stock will continue the upward trend, targeting EGP 46.00.
- The total stop loss or take profit level is below EGP 37.00.
MFPC
- The current trend is sideways, between EGP 138.00 and EGP 144.00, and it is preferable to take profit by 50%.
- The stock achieved all targets announced last month.
- It is preferable to hold the stock if it reaches 138.00 EGP.
- Buy again after breaching the level of EGP 144.00, and the stock will complete the upward trend, and the next target will be the level of EGP 165.00.
- Take all profits or stop losses if the stock closes below EGP 138.00.
EKHOA
- The stock is currently in a price correction phase, thanks to profit-taking.
- The stock achieved all targets announced last month.
- Seize any opportunity for highs to sell.
- Don’t form any buying position as long as the stock is below EGP 34.00.
- There are no targets in the current period.
- Stop losses in the event of a decline below the level of EGP 30.00.
ORWE
- In the medium term the stock is in a sideways trend.
- The stock achieved all targets announced last month.
- Activate partial profit taking by 50%.
- Stop losses or take total profits if the stock declines below EGP 10.00.
- Increase the buying position again if the stock settles above the level of 11.25, with a target of EGP 13.00.
ORHD
- The stock is moving sideways between EGP 6.90 as support and EGP 7.40 as resistance.
- The stock achieved all targets announced last month.
- It is preferable to take profits by 50%.
- Increasing the buying positions if the stock breaches the level of 7.40 EGP, targeting the level of 9.00 EGP.
- Stop losses in case of closing below EGP 7.00
AUTO
- The stock is moving in a sideways direction.
- Take profit by 50%.
- Increase buy position if stock breaks EGP 5.55 barrier; set target at EGP 6.80.
- Set stop loss at EGP 5.20.
ALTC
- The stock is in an upward trend for the medium term.
- Hold stock as long as above EGP 4.15, the target is EGP 4.70.
- Take profit or stop loss if the stock falls to EGP 4.15.
EFID
- The stock is in an upward trend for the medium term.
- Hold stock as long as above EGP 13.00, the target is EGP 15.40.
- Stop loss at EGP 13.00.
RMDA
- The stock is moving in a sideways direction between EGP 2.75 as support and EGP 3.00 as resistance.
- Take profit by 50%.
- Stop loss below if EGP 2.75.
- Increase buy position if EGP 3.00 barrier is broken, set the target at EGP 3.20 then EGP 3.55
EMFD
- The stock is under price correction pressure (profit taking), avoid forming taking any purchasing positions.
- Seize any opportunity to sell as long as the stock is below 4.40 EGP.
- Stop loss and liquidate open positions if they fall below 3.00 EGP.
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.
