Economic & Industrial

MIDHCO on the ascent

MIDHCO on the ascent
Mining News Pro -  Analysis shows that the Middle East Mining and Mining Industries (MIDHCO) parent company is on the upside, and the third wave is on its way.

According to Mining News Pro -In the days and months of the past, when the stock market ticked down the course and managed to capture new peaks, it could almost be claimed that all capital market groups in this big rally accompanied the stock index, and this would represent the stock market in this Marathon did not leave alone.

Although some groups occasionally played the role of leader and sometimes experienced more and more sharply than other groups, however, each company or group played a role in the upward trend.

One of the groups that was able to play the role of a bearer and even a leader over the course of several months was the group of basic metals. Considering the large companies it has in store, the group managed to convince market analysts and market players that their companies could make their financial statements with profits Fit together. This led to an increase in the shares of companies in this group and to see the growth of the companies operating in this group grow. Some of the companies in the metal base group managed to sweeten their shareholders by more than 200 percent.

But one of the companies that are in this group and neglected by the market is the parent company specialized in the development of mines and minerals in the Middle East with the symbol of MIDHCO. Market participants are well-known for their name, and they know that MIDHCO has always been an indifferent corporate with a positive performance in the capital market. In the future, we are going to examine the bigger company from different angles in order to predict the future of its stock in the capital market.

MIDHCO was registered at the Corporate Registration Office in 2007, and in Iran Fara Bourse Co. in 2011.This company was created with the philosophy of investing in investment companies, and positive actions were taken in this direction. The main focus of MIDHCO`s activity is on the production of concentrate of iron ore, iron ore sponge iron and sponge iron, which has ranked third in the production of iron ore concentrate with a production capacity of 16% of the total production of the country. The company also has the third-largest producer of 17% of its production capacity in the field of pellet production. Considering the large presence of Khuzestan Steel Co., Chadoremlou, MIDHCO has been able to rank higher than the companies in the third place in terms of its production capacity. With this description, MIDHCO can be considered an investment model in Iran.

MIDHCO, in general, produces 8 products, all of which are manufactured and are among the products needed in the world economy, in other words, it can be said that the growth of countries depends on the production and use of such products. The products include concentrate and iron ore, sponge iron, metallic coke, copper tube, ferrocylsium, coal concentrate and copper cathode. In the plan that MIDHCO has set for itself, achieving the production of 4 million tons of Mobarakeh Steel is one of the goals that the company is committed to achieving. However, crude steel is one that is always needed in all economies, and in some cases the use of steel in the economy is used to measure the development of the economy. It is important to note that MIDHCO has, on the one hand, an integral part in production and, on the other hand, has the first production chain.

Since the exchange rate has risen in recent months, the government has allowed companies to sell their foreign exchange sales at a rate of between 8,000 and 10,000 Tomans and, on the other hand, part of the production of manufacturing companies Which was sold on the stock exchange, has also been roughly priced at a secondary market rate, so the conditions are ready so that companies can increase their sales figures in 2018, due to an increase in their sales prices, which is a significant increase. Proven comparative profits. This is also true for MIDHCO. The company, which managed to earn $ 191 per share in its consolidated fiscal year per share of 2017, is likely to double its profits by 2017 in the year 2017. However, in 2016, the company`s profitability for each share was 120 Rials.

MIDHCO currently has 16 subsidiaries, including Zarand Steel, Sirjan Steel and Boto Steel. In the following, we will look at the status of the company`s stock price and the position it will take, in order to look at the technical aspect of the share to further clarify the future status of the company.

At first, we will share the long-term view. The company`s stock in its first move in 2013 succeeded in boosting prices from 340 to 350, followed by a wave of corrective actions. This correctional wave continued at $ 110, which was parted with 78% Fiber Channel. So, in the middle of last year, we saw a return from around 110 USD, which continued the upward trend in a bullish channel. The ups and downs of the share in a bullish trend led to the share price reaching its previous level in 2013 by the end of this year. In other words, the share is currently involved with its previous 350 USD resistance. Regarding the status of the indicators, it seems that the share in passing its previous resistance is not a problem and can easily break the previous ceiling. On the other hand, according to the situation of other civic groups MIDHCO who have broken and crossed their ceilings in 2013, MIDHCO seems to have no difficulty in doing so. In a simpler way, in the long term, the company`s stock market is likely to enter its third wave, which if confirmed, would have led to prices higher than $ 500 for those stocks.

But in the short run, as has been said, the share has moved on a channeled and uplink route that has already broken the canal ceiling and has gone up the channel`s size as much as possible. If the firm`s upside continues, which is highly probable, it will be possible to estimate prices in the short run at about 400 USD.

On the other hand, the company has the right to increase its capital, and the priority of the company can be taken into consideration by the market participants according to the company`s appropriate situation.

Mahmoud Ehterami, expert of Alpari Group International

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