Investments made by Olympic Technical Group (OLYMP) very successfully and the financials they presented for 2022 essentially provide a bullish note for the share price to give a medium term return of +82% to +100% from yesterday’s close of €2.37.
The reasons we can cite for such a performance are mainly the following:
Firstly, the equity of Olympique Technic shareholders is 175.98 million euros, which is equivalent to 4.325 euros per share. At the moment, the capital value on the board is 96.4 million euros. So in a potential decision for an optional public offering with a view to exiting the Athens Stock Exchange, the price will play from €4.30 to €4.50 or a massive rally up to +90%. We say if, because the inventory is quite concentrated. We’ve seen it in context and it’s very likely that we’ll see it again.
Secondly, the group at the end of 2022 had a net fund of €12.33m where if we add the €19m attributed to the group from the amount expected to be released at the end of July from the escrow account, which is part of the price. For sale, Porto Creas, 31.33 million euros, or 0.77 euros per share. Among them we can place another 2 million euros which are expected to be added in the short period of sale of the villa in Voula. So €0.82 total out of €2.72 is net cash.
Thirdly, the fleet of 7 containers where it has a participation from 15% in 6 small containers up to 85% with a large capacity of 9784 TEU. This investment is so successful that from the fact that the group paid for participation in 6 small vessels at $6.026 million and in 9 quarters has already accumulated profits of $6.322 million, one can understand what will happen in continuity. So here, in addition to the rapid consumption of the market value of participating in ships, the bottom line is that the group in this segment of the shipping sector can, with the changes stipulated in the charter agreements mentioned above, generate annual revenues that can reach $ 27.5 million, which means That in the long term they will only collect €100m from the current participation without doing anything else.
Fourth, the purchase price of urban real estate on behalf of Intrum Hellas is €19.8 million in respect of a portfolio of 186 horizontal properties in 83 properties located in different geographical regions of Greece (80% apartments, 10% offices, 10% plots of land) with 60% located in Attica , it is almost certain that they will make significant profits either from the resale or from the rental of the properties in question.
Fifth, the purchase through red mortgages of 12.5 million euros worth of real estate including the villa we mentioned and 7 acres (35% coverage) in Pigadakia Voulas. So there the group will build 9 thousand square meters. Ultra luxury maisonettes and apartment buildings with an additional investment of €18 million, giving a total cost of €28.75 million. The estimated selling price of the apartments is 8-9 thousand / square meter. Which gives a surplus value of more than 40 million euros.
Sixth, the construction part leads to a solution, so the “sucking” of profitability from the group will stop, while the collection is expected for 2023: from the state 2.2 million euros as a reward for the timely delivery of the project and 650 thousand euros from previously disputed projects. Also, with project delivery in Romania, a minimum of €500,000 is expected to be raised, which is likely to amount to €1.5 million.
Seventh, the group recently made a smart investment by purchasing a helicopter for €1.935 million which it leased for 7 years to an Air Transport Management Company which each year collected €194 thousand or 10% return.
The eighth reason is that the group, which has 50.885 million euros of liquidity, actively participates in real estate auctions seeking significant capital gains. He did something similar in purchasing a shop building with three floors and two basement floors with a total area of 4,267 square metres. On a plot of 4,570 sqm, located on the 2nd kilometer of Vary Street – Korobe, offering €2.512m which aims for an annual yield of 10% through rentals.
Finally, the ninth and tenth reasons relate to the stock’s medium- and long-term chart analysis.
In the first one related to the monthly price chart, Olympic Techniques stock broke through the resistance at €2.25 with a large volume of transactions the first target was €2.70 as the stock was written in 2019. The stock has no significant resistance until €3.30 or +45% From the breakout area 2.25 EUR.
Of course, today’s perfectly clean and profitable group has nothing to do with the 2019 group in which losses amounted to -103.67 million euros.
As for the long-term quarterly chart, the situation is ready to escape from any planning control because the share price, after crossing 2.40 euros, completely changes the category, and escapes from the downward incorporation that has been for more than 5480 days with more than 90 million shares. But be careful because the category change leads to a huge bullish range as it can reach a depth of three years as high as €6.40.
However, 2023 will be ranked as the year of historical records in terms of Olympic technique performance.
* Apostolos Manthos is responsible for technical analysis and investment strategy
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