What’s Going On With Speed Medical?😬

Local Pickup🌇

What’s Going On With Speed Medical?😬

Speed Medical (SPMD) is down 32% over the past two trading sessions. Here are the company’s recent developments:

Four days ago4️⃣ SPMD released a statement denying the rejection of an EGP 20 million settlement regarding the company’s abandonment of the acquisition of Prime Speed Labs.

Two days ago2️⃣ SPMD released another statement stating, “Regarding the rumors circulating on social media platforms regarding investigations with the Chairman of the Board of Directors [Mahmoud Lashin] of the company, Speed Medical denies all these rumors, & that he is currently in his office & doing his work normally.”

Yesterday1️⃣ the company released a disclosure stating that Lashin sold EGP/49.44 million worth of SPMD shares at an average price of EGP 1.495/share. The sale decreased his stake in the company by almost 3%, from 27% to 24%.

Why is Speed Medical in our top picks?🤔
We choose our top picks based on attributes that are associated with higher returns. We came up with a 3.76/5.00 score for SPMD in our December top picks. Some of the factors that gave the company a high score include an ROAE of 39%, a 3-Year Net Income CAGR of 149%, and an analyst recommendation upside of 24% before the sharp decline of 32% during the past two days. 

SODIC’s Sold. Cleopatra Hospitals Could Be Next🏥

Cleopatra Hospitals Group (CLHO) received an optional purchase offer from CI Capital (CICH) subsidiary MCI Capital Healthcare Partners to acquire a 26.21% stake in the group.

Optional Purchase Offer vs. Mandatory Tender Offer In Egypt, a mandatory tender offer (MTO) is triggered when an offer looks to acquire more than or equal to 33% of a company. MCI Capital’s offer is less than 33% of CLHO’s capital, making it an optional purchase offer. 

More details🧐 MCI Capital offered to acquire a 26.21% stake in CLHO at a price of EGP 5/share. Care Healthcare, which owns 37.87% of the group making it CLHO’s biggest shareholder, agreed with MCI Capital to sell a minimum of 7.87% of CLHO’s shares, & up to 12% of CLHO’s shares. 

Why is this important🤔 Although the offer is still pending approval from the FRA, CLHO’s stock price closed 4.68% in the green yesterday at EGP 4.70/share following the news. 

Ghazl Al Mahalla to Offer 66% Stake, Says Prime Holding CEO⚽

Prime Holding (PRMH) CEO Mohamed Maher revealed that 66% of the company will be listed on the EGX by the end of this month.

More details🧐 Maher explained that Ghazl Al-Mahalla Football Company was established separately from Ghazl Al-Mahalla Factories. He added that sports companies make a profit by buying unknown players, raising players within clubs, & then selling them again. 

A Football Club on a Stock Exchange?🤨 Although this IPO would mark the first publicly listed football club on the EGX, there are several publicly listed football clubs in other stock exchanges. Some of the most prominent clubs include England’s Manchester United (MANU), Italy’s Juventus (JUV) & AS Roma (ASR), Germany’s Borussia Dortmund (BVB), Netherlands’ Ajax (AJAX), & Scotland’s Celtic (CCP).

Global Pickup🌎

Germany’s Angela Merkel Era Ends; Enter Olaf Scholz🏛

Angela Merkel, Germany’s chancellor for the past 16 years, came to an end yesterday as Olaf Scholz was voted in as the new German chancellor.

Merkel’s Tenure👱‍♀️ On the domestic level, Merkel’s tenure will be remembered for enhanced living standards, a conservative fiscal approach, & lower unemployment rates.

On the international level, she’ll be drastically remembered for her “open-door” policy at the start of the European migration crisis in 2015, setting the tone for other European countries & even having an effect on governments outside the continent.

Expectations for Scholz👨 Scholz pledged to prioritize social justice, accelerate efforts to cut carbon emissions & maintain Merkel’s fiscal discipline.

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