Brief Summary
This video discusses an African investment fund's potential acquisition of Mina Pharm, an Egyptian pharmaceutical company. It covers the financial and technical analysis of Mina Pharm's stock, highlighting its potential for growth and profitability. The analysis suggests the stock is undervalued and presents a favorable entry point, but advises caution due to pending regulatory approval and the importance of strong capital management.
- African investment fund is negotiating to acquire Mina Pharm.
- Financial analysis indicates the stock is strong and undervalued.
- Technical analysis suggests a good entry point with specific stop-loss and profit targets.
- Emphasizes the importance of capital management due to pending regulatory approval.
Introduction
The video introduces news from the stock exchange about an African investment fund looking to acquire a stake in Mina Pharm, a company controlled by the Bardisi family. The fund is in negotiations to acquire shares from Nehali, Wafik, and Shair Bardisi, who collectively own a significant portion (79% and 59%) of Mina Pharm. The goal is to gain complete control over the company, but the deal is pending approval from the Competition Protection Authority. The speaker intends to provide his personal point of view on this news and encourages viewers to research and discuss the topic.
Company Overview and Sector Analysis
Mina Pharm is described as a pharmaceutical company in the health care sector, which is considered promising due to population growth and increasing health needs. The health care sector is already growing and doesn't necessarily need acquisitions to strengthen it. The speaker believes this news will positively impact the stock, but emphasizes the need for financial and technical analysis before making any decisions. He clarifies that his analysis is not an invitation to buy or sell, but rather his personal perspective.
Financial Analysis of Mina Pharm Stock
The financial analysis of Mina Pharm stock reveals that it closed the session at 234 pounds, with fluctuations between 232 and 240 pounds. Over the year, the stock has moved between 145 and 268 pounds, a range of 120 pounds. The market cap is 2 billion 760 million pounds, with a P/E ratio of 20 and a price-to-earnings ratio of 4.6, indicating strong profitability. The company's revenues are 5 billion 665 million pounds, and the basic earnings per share (EPS) is 11 pounds and 68 piasters. Notably, the book value of the share is 389 pounds, significantly higher than its market value of 234 pounds, suggesting the stock is undervalued. The company's profits have increased by 21% compared to the previous year, further supporting its financial strength.
Technical Analysis of Mina Pharm Stock
The technical analysis uses a weekly frame for Mina Pharm stock, highlighting a strong support line at 229 pounds. The stock is currently at 235 pounds, close to this support line. There's an upward trend since 2021, with a double bottom pattern and a confirmed breakout. This suggests a good entry point. A stop loss is recommended at 210 pounds, and a profit target is set at 290 pounds, based on the height of the double bottom pattern.
Conclusion and Recommendations
The video concludes that the African investment fund's interest in acquiring Mina Pharm is supported by the company's strong financial and technical indicators. The stock appears to be in a good entry area, with a stop loss at 210 and a profit target at 290. However, it is crucial to remember that this is not a call to buy or sell, but rather a personal point of view. Strong capital management is essential, limiting investment to 5% of capital, due to the pending regulatory approval, which could potentially reject the deal. If the deal proceeds, increasing investment with every correction is suggested.
