Flag these stocks for 2024

Written by the Apostle Menthos

And just as I do at the end of each year to reveal to the investment spotlight three listed groups whose stock values, through their economic sizes and business movements, can provide dynamic guarantees of strong performance of more than +40% in the coming year, so next year I will reveal three groups that have the background to excel. In 2024. Last year anyway, more specifically on December 30, 2022 titled “The hidden aces in the returns sleeve” It brought Piraeus Bank, Unibios and Euroconsultants into the investment spotlight. The returns for someone buying those stocks that day were beyond my wildest expectations. Piraeus gave a return of +125%, Unibios +67%, and Euroadvisors +88%.

So, for 2024, the groups that can excel are Purchasing powerthe Intralot (entrance) and Interlife (Enlive).

I'll start with her Purchasing power, that some still have it outside the scope of investment, but it is certain that in 2024 they will have to turn the antenna towards it to receive its signal. As one distinguished institutional investor quips, “We will enjoy the new PPC we will encounter in 2024.”

This large conglomerate, which in 2019 was on the verge of bankruptcy, has gone through the rocks of the global health crisis in 2020 and the caribdic energy of the Russian-Ukrainian war in 2022, and has now found itself – with strategic moves made by the management staff of the President and Managing Director of PPC. , Mr. Georgios Stasi, is at the head of the new major development track. The management that has left its power over the stock in the last five years is indelible, as since 2019 it has achieved +745% providing guarantees for a strong upward continuation in the next two years as well. After all, PPC is one of the two leading groups on the Greek stock exchange that can pass through the €10 billion gate in terms of its capitalization. The other group, as I mentioned before, is the Mytilineos group.

The high priority that Mr. Stasis has given to a green business model with a strategic development plan in which PPC will rely on decarbonization, transition to renewable energy sources, storage systems, and modernization of electricity supply, is the secret to the recipe for strong growth. The direction of traffic coming to the value of its shares. The Trojan horse named DEH Renewables (DEHAN) is the one that will soon plunder a capital of 5 billion euros, now 4.2 billion euros and will eventually bring it to 7 billion euros.

In less than 6 months, PPC will install power in renewable energy sources in Greece with a capacity of 1.024 GW (now 669 MW) while within 18 months it will double its capacity to 2.27 GW. There is of course Enel Romania with a current installed capacity of 598 MW, bringing the total current capacity to 1.28 GW. Enel Romania henceforth shows the discrepancy in PPC capitalization on the stock exchange board since this company alone is worth EUR 1.9 billion at the same time as the entire PPC is worth EUR 4.2 billion. We're talking about a Romanian company that will initially cause a massive increase in PPC customers by 55% (from 5.6 to 8.7 million), renewables production potential by 23% (from 3.9 to 4.8 GW), and capacity under development by 50%. (10 to 15 GW) and recurring EBITDA by EUR 300 million from EUR 1.2 to EUR 1.5 billion.

Of course, PPC will not stop here, because as we have repeatedly mentioned, it is and will be more aggressive in its investment moves, constantly working to build strategic agreements to more quickly promote its ambitious business plan, which has as its ultimate goal the goal of being at the top of green energy companies. Thus, after RWE Renewables, Motor Oil Group's MORE, Mytilineos and Intrakat, Kopelouzou Group and Samara took turns in deals. Therefore, this strategic orientation of PPC towards green energy will not be able to keep the share price below €13.50 in the coming months, with the goal of reaching €15.

Move to Intralot, Just by looking at the quarterly chart, we understood its intentions, which are nothing more than a bullish breakout of the fragile resistance of 1.34 euros and entering into a great investment opportunity provided by the price level that extends between 1.70 and 2.26 euros. We wrote in a previous analysis that, when the stock price was €0.62, €1 would be just the first step on the arduous road it will take in 2024. Now that the stock has made more than €1, trading volume stands at $28.5 million. Computers Maybe some will understand what comes next.

The group, after finalizing its €130 million retail bond, possibly next January, will radically change its financial position, putting Intralot on the radar of large investment funds, with a capitalization of €1 billion then just around the corner. The market even hears that after the entry of the Intralot USA subsidiary on Wall Street, a huge buyer will appear who will make a powerful acquisition at a price that will exceed 1.2 billion euros. But of course, the powerful local businessmen, Mondias, Germanos, Vassilakis, and Katso, did not enter Intralot's capital without seeing the “light” of profit in the background.

Let's also not forget that Intralot is currently one of only three companies operating in the lottery industry in the United States and worldwide. The other two companies are Scientific Games, now owned by Light & Wonder (LNW) and listed on the NASDAQ with a market capitalization of approximately US$7.5 billion, and International Game Technology (IGT) listed on the NYSE with a market capitalization of US$5.56. one billion.

There are, of course, other important elements of Intralot's financials that could justify a capital increase. The data we have analyzed and will analyze extensively in 2024, which is also the year of “unlocking” Intralot’s great potential. Hold on to your seats, Intralot's incredible turnaround story has only just begun.

I close with her Interlifethe only listed insurance company that shows through strong growth potential and a very crucial European parameter that it wants to play an important investment role in 2024.

Very good companies that currently have an interesting, low-risk entry into their stock value and a great return on invested capital are now counted on the fingers of one hand. This particular company has not without any reason fallen behind in terms of the big upward movement of the market that occurred in 2023. The company literally oozes health in its financials, they are impeccable, without any weakness and without a single euro of debt.

Interlife therefore has an upside margin of +50% just from the fact that its net worth is €6.91 and the stock is at €4.65. Net worth that increases every year. Imagine that five years ago it was €69.7 million and now at the end of 2023 he finds himself with equity of €130 million, meaning it has almost doubled. Interlife's six-month net profit was €10.93 million and we expect a twelve-month capitalization of just over €86 million.

Now pay attention because the decisive factor I mentioned is related to the pressures of the European Union due to the primitive state of the insurance market in our country. We are literally lagging behind any African country. Private insurance premiums per person for the basic items that center our lives, such as health and housing, are many years behind, and even go back further than 1980. Thus, while the average European pays 483 euros for health, a Greek pays Only 67 euros. However, where the first major EU pressure on the government to take action to increase insurance “awareness” due to extreme climate change is expected to be in home insurance. So, on average, a European pays 344 euros, while a Greek pays only 44 euros. Some believe that the situation will take a “coercive” form, as happened with digitization and information technology companies. I've seen their stock prices rise dramatically. So we don't have many insurance companies listed here. Just one, Interlife.

Not to be outdone, the scope for growth of the company in question is huge and the share price will begin to evaluate in the new environment that will be formed not naturally from €4.65 as it is now, but on a net worth basis that is €6.90 to €7. After all, there will be the first strike of a potential takeover.

Schematically, the stock is on track for a major escape above EUR 5, setting the next medium-term target at EUR 6.10. Immediately after that, the dish will be given a range of 6.90 to 7 euros.

I wish you a happy and healthy New Year to applaud the entry of the Greek Stock Exchange into developed markets.

* Apostolos Manthos is responsible for technical analysis and investment strategy