During times of great crises and declines in financial markets, investors usually resort to maintaining financial liquidity to face any potential risks or severe deterioration in conditions, and it is possible to use this liquidity to seize investment opportunities that enjoy a rewarding return once this crisis ends, or so say the owners of investment theory in economic conditions Hard.
In light of the great declines witnessed by the Egyptian Stock Exchange in the recent period, due to fears of the Corona Virus, it may be on the cusp of a historic opportunity and entering the market in selected stocks and taking the famous example at a time when crises are creating wealth, because the shares have reached very attractive levels of purchase, and are trading at some prices Before flotation, despite the fact that these companies achieve good profits or have strong assets that do not reflect the value of these companies, especially if you compare the prices of these companies before and after the flotation.
One of the most prominent examples of seizing the opportunity at the time of the crisis is what American billionaire Warren Buffett did at the height of the global financial crisis in 2008, as many companies almost declared bankruptcy after a number of banks and financial companies that funded real estate deals went bankrupt, and Buffett invested in Goldman Sachs – who was involved in igniting the mortgage crisis as well – invested a few million dollars in General Electric and pumped money into Bank of America, the bank that also faced the pressures of the crisis at the time, but he knew that this Institutions will overcome adversity and return to Lakeh.
He also pumped money into Wells Fargo, which was badly hit, a US multinational giant financial services company also hit by the crisis, and invested in US Bank Corp. Bancorp. All these institutions and others were terrifyingly losing their market value, and they took advantage of the opportunity and obtained millions of shares with half their value and less, and he wager that they will return it with millions of dollars after the crisis, and he was right.
Ahmed Murtada, an expert in financial markets, says that the Egyptian money market includes many attractive opportunities at all levels, including the real estate sector, such as Talaat Mostafa Group, as the share price reached 6.80 pounds, despite the company achieving positive business results every year In addition to having a huge land portfolio, on the other hand, the stock is trading at its price before floating near the levels of 7 pounds, although it rose after the float to the area of 14 pounds.
In the same sector, he added, there is the Sixth of October for Development and Investment – SODIC, which fell to levels of EGP 9.60 for less than its level before floating, which is 10 pounds, although it reached the level of 29.80 pounds after floating, in addition to that the stock’s performance does not at all express The amount of revenue.
And he continued in the non-banking financial services sector, because Citadel Capital is one of the attractive shares, as the company owns shares in a large number of successful companies, the most prominent of which is the Mostorad refinery, although the share price reached 1.47 pounds, near its levels before floating, especially And that the stock rose to 4.30 pounds after floating.
As for the commercial banking sector, he clarified that the Egyptian Export Development Bank shares are trading near its levels before floating at 8 pounds, although the bank has achieved positive business results in addition to distributing cash coupons to shareholders by one pound per share, although before floating it traded near the level of 15 fairy.
There is also the Ezz Steel share, which is trading near the level of 6.10 pounds, which is a level lower than its price before floating, and does not reflect the size of the group’s investments, despite incurring losses as a result of high energy prices and the import of imported iron before imposing dumping fees, but the stock It previously achieved 30 pounds levels after floating, and in the event of lower energy prices, this will have a positive effect on the stock’s performance.
He pointed out that there are many other examples of shares whose prices do not reflect the size of its activity, profits, and dividends, and there are many opportunities in the market, and it is preferable to seize shares with multiples of low profitability, therefore the declines in the market can be exploited and start purchasing centers, knowing that in If the exchange tax file is modified, this will also be reflected in the affirmative. In the case of lower energy prices for factories, this will be positively reflected in the industrial sector.
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