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, along with 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 about NIS 3.3 billion, and about a year later they 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.
The leader of the green trend is the R & D Food Partnership, an investor in the field of podtech, which has jumped 954.97% since the end of its first trading day in March 2021. This, after reporting several investments and their progress during this period. Success in genomic editing of cell lines from a tilapia fish source, for the benefit of the development and production of cultured fish meat – the activity of one of the companies held by it.
But not all of them have enjoyed continued trust from investors. Five of the other companies examined in the table lost a value of NIS 1.2 billion, after each of them decreased by an average of 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 NIS.
The leader in the decline table is the artificial intelligence company Razor, which has lost 75.98% 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.
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The recession will come
Guy Manny, chief investment officer at Meitav Dash Investment House, told Walla! Money and Maariv Business: Examination of the companies It is worthwhile to also examine all the issues that did not materialize.
“One of the reasons why the issues did not take place was the value that the companies asked for in examining their issues, although not much changed in some of those companies during the two or three years before, so the value was lower. “Once a gap has been created between the forecasts they presented and the results of their actual activity, it also works in the opposite direction, when the results exceed expectations.”
“In Israel today there is crazy hype about real estate, which leads companies to trade up to three and four times their equity. Real estate is rising against the backdrop of the recession, low interest rates, return to malls and offices and the boiling of the residential real estate market. The gap on the indices in the United States, which in 2021 did between half and two-thirds of what the Tel Aviv Stock Exchange indices did. “
“This is mainly due to the fact that the main indices in the US are Moti Technology – a sector whose weights in the American indices are higher than in the main indices on the Tel Aviv Stock Exchange, and Karno declined 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 they rose sharply in 2021, after experiencing sharp declines in 2020. But it is clear that the hype will end sometime. Just as there was in the past hype on technology stocks and hype on wallet companies (spikes).”
Guy Manny (Photo: PR)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. The Israeli capital market.
“It is true that the trend that began in 2022 was a correction in the price of shares, and it raised some of those that fell in Corona and lowered some of those that rose during the epidemic. There is no doubt that the ‘correction’ recently experienced Like Lemonade and Weeks, it also affected the performance of companies on the Tel Aviv Stock Exchange. “
Lawyer Ilan Gerzi (Photo: Tomer Jacobson)“However, the companies that made promises backed by numbers and did not try to ride the wave of Corona issues won the trust of investors, and their shares reached significant values after the issue. Percent since issued.
“We may not be privileged to see a flood of issues with 99 new companies in 2022, similar to last year, but 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, leading to estimates that several companies Not insignificant, from a variety of sectors, traditional and new, to the struggle for investor confidence. “