Gear racing for 3 euros

By Apostolos Manthos

The market began to boldly “bet” on the last period between two companies moving at the same price levels that the company will have time to write 3 euros first. You see, in a bull market, that’s allowed too.

The first is ELTON International Trade (ELTON) with a capital of 76 million euros and the second is EXALCO – BIOCARPET (BIOKA) with a capital of 66 million euros. The subject of activity of the two listed companies is of course different, and for this very reason we will focus only on the planning war that opened through the very close share prices on the board. Indeed, at the time the article was written, Thursday afternoon, they were both at 2.75 euros and … they walked.

The fact is that I set up a “trio” starting with OLYMP stock, but he could not wait for the meeting to end and I left with the first “gavolia” for €3 before the start signal was heard.

As for a percentage comparison with the overall index, since the beginning of July, I would say that the ones that lag a little bit behind are ELTON with -1.07% in relation to BIOCARPET’s +3% and DG’s +3.6%. So ELTON theoretically owes a transaction. But in practice it will appear.

In the partial analysis of the chart now EXALCO – BIOCARPET is finally coming after a long time and “snatching” what the market owes up. Thus, after the upward split of €2.35 at the beginning of June, it has developed speed to the next resistance area of ​​€3.10 which comes from far 2007. In case this is not in the way either, it will open a communication channel at €3.74 or +34% from the current price levels. Volume for the break-up is significant because it is close to 900k shares since crossing the €2.35 mark, which simply means that the upside has the fuel to climb to higher numbers.

2022 was a very strong year for the group, bringing shareholders a net profit of €11.14 million. However, 2023 is also expected to be a good year for the Group as it had ahead of it a very aggressive investment program related to both renewable energy sources (the goal is to cover the Group’s energy consumption from RES, with the addition of new photovoltaic collectors), and with the expansion of the production unit in Kolori Larissa, with the aim of significantly increasing productivity and making the most of Exalco’s production facilities. In fact, the part of RES that will include photovoltaics and biogas will reduce energy costs to zero, which of course means greater profitability for the group’s shareholders and very competitive prices for customers. At the same time, the group recently took on the representation of a Chinese photovoltaic garden panel company.

I continue with ELTON, as it recovered after an initial attack towards the €2.90 area after some profit-taking liquidations to the very strong support area of ​​€2.60. It is now poised to re-enter that area paving the way for a move to the next vector price area at €3.30. Above that, you will miss the compass mark a bit because the next target is close to €3.70. The long-term trend is still in bullish strength under the eye of the “S” axis. Quite big here for what we are used to is the trading activity that developed in the stock after that and the very important break above €2.60 as it is now close to 1M.

The group performed very well in 2022 as it recorded a net profit of 10.94 million euros and continued to achieve the same performance in 2023. The purchase of a chain of real estate with an area of ​​131.29 acres in Oinophyta at a total price of 5.35 million euros will also play an important role as it will enable the company to triple its storage capacity, thus opening up the margin significantly to increase the volume of production.

Overall, however, other than the aforementioned schematic sprint for €3 and from the two companies listed, we have a lot to look forward to in the next couple of years, something that will also be strongly reflected in their stock values.

* Apostolos Manthos is responsible for technical analysis and investment strategy