These are Ofco, Energix, Mitronics, Matrix, Nova and Sapphire – all, according to stock market definitions, are included in the various technology industries – a field that enjoys a refinement in the world as well, especially in the US. The big technology stocks on Wall Street are breaking records What investors hope will now also happen in the Tel Aviv-35 index, with the help of the new entrants.
From the beginning of the year until now, the new entrants to the flagship index are concluding a rather positive period – and as a trend, their shares are showing decent returns, in the double-digit range of 30% -80%. Although some of these stocks suffered significant declines with the outbreak of the corona crisis, they were able to recover from them quickly.
These returns send quite a few of those companies trading around record levels, and also stand out from their shares in relation to the three technology indices on the stock exchange, which have climbed 30% -40% since the beginning of the year (and stand out from the other indices in Tel Aviv). The companies have a range that starts at more than NIS 5 billion and reaches up to NIS 7.5 billion.
Of the six companies, Ofko stands out – the only one of the new entrants to Tel Aviv-35 that has previously been included in the TASE’s flagship index. Ofko’s share has soared nearly 300% since the beginning of the year, to a price that crosses a threshold of NIS 13 billion. Among the Tel Aviv-35 companies.
Although all of the new entrants to the TASE’s flagship index have in common their inclusion in the various technology industries, they are engaged in a wide range of activities, including life sciences, cleantech, information services, electronics, optics and semiconductors. Half of those stocks (Nova, Ofco and Sapphire) are dual, also traded in the US.
What is important to know about the new entrants to the Tel Aviv-35 index? Here are some interesting things.
Ofko: Thanks to the tests for Corona
Horizon It is the most prominent of the new entrants to the index in terms of its market value, which is approaching NIS 13.5 billion, and in terms of the performance of its share, which has jumped close to 300% since the beginning of the year.
It was only in early April that the company’s stock, which is controlled by CEO Philip Frost (former chairman of Teva), reached a low level where it had not been for many years, amid a decline in new products leading to the market and a contraction of its lab network, Bioreference. However, the corona plague supported the sharp and rapid change of direction presented by Ofco, which decided to develop corona virus tests and market them through its lab network – which jumped its share from its low point in early April, to close to 370%.
As part of its decision to enter corona-related activities, Ofco decided to halt a rehabilitation process it had carried out in the laboratory network, which had suffered from market changes, and instead stormed the opportunity Corona had created for it, vigorously entering its virus-related laboratories.
At the moment, Ofco’s decision seems quite successful, and recently the company has updated, among other things, on its choice to be the one to perform all the corona tests of the professional basketball, football and football leagues in the US, after the decision to return them to activity, and received orders to test teams Nursing homes and also for a serological examination for the corona she developed.
Energix: “Hype” around green energy
The field of green energy is one of the branches of activity that enjoys ongoing “hype” on the Tel Aviv Stock Exchange. The strength shown by the industry’s leading stocks since the beginning of the year (a jump of tens of percent) also supported the success of the issuance of two new companies last June (Doral and Energy Economy), and the hand is still out.
anrg’ix , Which initiates, develops and manages facilities for the production of electricity from renewable energy sources and sells electricity produced in these facilities, enjoys, like its competitors, the increasing dominance in the production of electricity through renewable energy. Energix shares, which have jumped by 55% since the beginning of the year, are currently trading around the peak level, which reflects the company’s current market value of about NIS 7.5 billion.
As in other industries, the crisis was an opportunity for some green energy companies, and at its peak in March, the rate of electricity production from renewable energies in Israel reached about 27%, compared with about 10% on weekdays.
Energix’s joining Tel Aviv-35 is another step in establishing the activities of green energy companies in the face of the decline in the value of traditional energy companies, which stood out in the recent crisis following the collapse of world oil and gas prices. It also led to sharp declines in their shares and led to the repression of the Delek Drilling Partnership and its controlling shareholder, Delek Group, as well as the share of Bazan and its controlling shareholder, the Israel Company, outside the leading index, after many years of being a dominant part of it.
Mitronics: The full half of the pool
With the outbreak of the crisis in the markets, the share of Mitronics also failed to stop the drift, and until the low point it set in March completed a dive of close to 40% from the beginning of 2020. However, since then, it has recovered impressively, with a jump of 180% from a point The low, and in total it presents a nice climb of about 80% since the beginning of the year, which sent it in early August to a record level and a current company value of about NIS 5.6 billion.
As a developer and marketer of robots for cleaning swimming pools, Mitronics also raised quite a few question marks during Mitronics’ operations, and as the company states in its financial statements published in May, it “considers a high possibility of reducing its sales activity in robots for cleaning public pools in the coming months.” For the discovery of drownings (Poseidon) in public pools.
However, it seems that at the current stage, investors are mainly looking at the opportunities inherent in the company’s share, which is controlled by Kibbutz Jezreel. Mitronics estimates in its reports, among other things, that “private pool owners will increase their use during the crisis” – allowing it to “reduce the risks of further virus spread”.
Alongside this, in summarizing the first quarter of the year presented Mitronics Continued growth in sales and improved net profit, thanks to early preparedness for the crisis, as the company reported, and investors are now awaiting the results of the second quarter, which are expected to be published next week.
Matrix: The senior representative of IT
Matrix, like Sapphire, is also part of the Formula Group, and is a provider of diverse IT solutions. Stocks in the IT sector on the stock exchange have enjoyed positive momentum in recent years, and despite some decline at the start of the Corona crisis they have recovered quickly.
Also stock Matrix Records an increase of 31% from the beginning of the year, after from the beginning of 2020 until its low point in March it plunged by about 35% – from there and so far it shows a recovery of more than 100%, after setting a record level earlier this month.
Matrix, managed by Moti Gutman, is the largest IT company on the stock exchange, with a current market value of close to NIS 5.6 billion, with the holding value of Formula standing at NIS 2.7 billion.
Matrix announced about a month ago the acquisition of control of Gasttenertech, a company that provides printing services and office automation, for NIS 49.8 million. This is the third acquisition of The Matrix in the last two years.
Nova: At an all-time high
Nova, managed by Eitan Oppenheim, provides measurement solutions for the field of production process control in the semiconductor industry. The company is traded simultaneously on the Nasdaq and Tel Aviv stock exchanges, and its market value is NIS 5.4 billion, after a 46% increase in the share price since the beginning of the year. The stock is currently trading around all-time highs, after losing about 25 from the beginning of the year to March. %, And from there completed a jump of about 85%.
Nova Last week released its second-quarter financial statements, in which the company’s revenue grew 22% to $ 62.6 million, and non-GAAP net income increased 53% to $ 13.8 million.
During the second quarter Nova reported that it was selected by one of the leading chip manufacturers to provide it with optical metrology solutions. Although the company did not report who the manufacturer was, it was estimated that it was Intel.
Sapphire: Acquires even in times of crisis
Sapiens from the Formula Group provides software solutions for insurance companies. The company’s share has risen 36% since the beginning of the year, and is trading at levels close to a 20-year high, although the price is still far from the highs recorded during the high-tech bubble.
also Sapiens Failed to evade the wave of declines recorded in the crisis, shedding more than 30% from the beginning of the year to March, but has since doubled in value. Sapiens’ current market value is about NIS 5.3 billion, and the holding value of the controlling owner, Formula Systems, is about NIS 2.5 billion. The company’s CEO is Roni Al-Dor, who has been leading it for about 15 years.
Despite the crisis, Sapphire is continuing its acquisition strategy – and in light of its recent acquisition of Delphi from the U.S., it has raised its annual forecast. Recently, Sapphire has raised $ 60 million in bond issues.