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An action in five stocks that crashed and five stocks that crashed

The Tel Aviv Stock Exchange, like any stock exchange, has always experienced ups and downs.

But while some companies' shares are floating on the water, others tend to sink.

We examined several companies that were recently issued in Tel Aviv: five were painted green and five red

Roast Greenberg

23/02/2022

Wednesday, 23 February 2022, 18:00 Updated: Thursday, 24 February 2022, 10:56

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We went out to examine about 20 Israeli companies that issued their shares during or near the first quarter of 2021, and focused on five of the companies that showed a green trend of sharp rises, alongside five stocks that failed to avoid red declines.

The five companies that presented the highest return to investors ended their first trading day with a combined value of NIS 3.3 billion, and about a year later added about NIS 2.3 billion to the combined value, which currently stands at about NIS 5.7 billion, after each increased by -262.9% on average.

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The one that goes up or the one that goes down? (Photo: Walla !, no)

The leader of the green trend is the Biomet Food R&D partnership, which invests in the field of podtech, which has jumped 954.97% since the end of the first trading day of March 2021. This was after it reported a number of investments and their progress during this period

. Success in genomic editing of cell lines from a tilapia source, for the development and production of cultured fish meat - an activity of one of the companies held by it.

But not all of them enjoyed continued trust from investors. Of which the average value

decreased

by NIS 73.97%, after the aggregate value on the day examined was NIS 451.2 million, compared to their first trading day, they finished with an aggregate value of NIS 1.7 billion.

Since the end of its first trading day in February 2021.

The company was traded at a value of NIS 130.3 million on the last trading day examined, compared to a value of NIS 542 million at the end of its first trading day.

The reason attributed to the steep downward trend, is its issuance on a wave of expectations, while its financial statements since then show mostly disappointing results.

It is clear that the companies that received sharp increases come mainly from the sectors that experienced declines with the onset of the corona plague, and rose sharply with the return of the Israeli economy to routine about a year ago, and that the companies that suffered declines are growth companies.

The good news is that the upward trend was higher than the downward trend, and an examination of the companies in the table found that the investors actually received an aggregate increase of about NIS 1 billion on their investments in all the companies.

Guy Manny, Chief Investment Officer at Meitav Dash Investment House (Photo: PR)

Pessimistic assessment: The recession is yet to come

Guy Manny, chief investment officer at Meitav Dash Investment House

, told Walla!

Money and Maariv Business, because "2021 may have brightened the face of the local stock exchange, which made a catch up on the missing investments in 2020 and vis-à-vis the United States, but even before examining the companies, it is worth examining all the issues that did not materialize.

One of the reasons why those issues did not take place was the value that the companies requested in the context of examining their issue, even though not much had changed in some of those companies during the two-three years before, so the value was lower.

Without referring to this or that company, there are companies that have experienced a decline in their share price after a gap has been created between the forecasts they have presented and the results of their actual activity, and this also works in the opposite direction, with results exceeding expectations.

In Israel today, there is a crazy 'hype' on the subject of real estate, which leads companies to trade up to 3 and 4 times their equity.

These, along with the return to oil and gas stocks due to rising demand for available energy, and the rebound experienced by the finance and banking sector in particular, led the local stock market indices to catch up with the US indices, which in 2021 made between half and two thirds of the Tel Aviv stock market.

This is mainly due to the fact that the major US indices are Muti Technology - a sector whose weights in the US indices are higher than in the main indices on the Tel Aviv Stock Exchange, and our fund decreased among stock market investors in 2021 compared to 2020, while the main indices in Israel are Moti Real Estate and Finance. Significant weight in the indices, and rose sharply in 2021, after experiencing sharp declines in 2020.

But it's clear the hype will end someday.

Just as in the past there was hype about technology stocks, and hype about wallet companies (spacks). "

Adv. Ilan Gerazi, Senior Partner and Head of the Capital Market Department at the Law Office of Pearl Cohen Tzadok Letzer Letzer (Photo: Tomer Jacobson)

Optimistic assessment: The tide will continue

There are also those who remain optimistic about the local stock market and believe that 2022 will continue the trend that began in 2021 in the Israeli capital market.

:

And there is no doubt that the 'correction' recently experienced by technology stocks traded in the United States, including the shares of Israeli companies such as Lemonade and Weeks, also affected the companies' performance on the Tel Aviv Stock Exchange.

But at the same time, the companies that made promises backed by numbers, and did not try to ride the wave of Corona issues, gained the trust of investors and their shares reached significant values ​​after the issue.

A number of companies can be mentioned in this aspect, including 'Trakant', 'Nur Ink', and the R&D partnership 'Biomet Foodtech', which have shown returns of tens of percent since they were issued

. However, it is difficult to disagree with the statement that in 2021 the Tel Aviv Stock Exchange finally acquired a central position in the Israeli economy.

A status that leads to the assessment that this year a significant number of companies, from a variety of diverse, traditional and new sectors, can be expected to join the struggle for investor confidence. "

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