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Rationale and mystery in Emirates Refreshments Co.'s stock upturn


Diversification plays
ERC planning to invest in real estate, construction and facility management, as well as in industrial and mining activities, and healthcare. And sectors like mining and food generally operate at razor-thin margins. It is highly unlikely that ERC will be making significant profits with a capital of Dh300 million, even if it can leverage it.
The current retail mania seems to have triggered this rally, and investors will be better off not chasing this rally.
Aldar Properties, a well-run real estate company, has assets of Dh39.5 billion from which it generated revenues of Dh7.98 billion in the last 12 months. And it struck a profit of Dh1.45 billion giving it a net profit margin of 18.2 per cent. ....

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