Are Solidere and BLOM Stocks Correctly Priced?

By Invitation:

Dr Azar is Professor of economics and finance at Haigazian University in Beirut, Lebanon. The views expressed in this are his and do not reflect the views of BLOIMVEST Bank.


The BLOM and SOLIDERE stock prices are reported on the evening MTV news bulletin every working day. The market prices are highly popular, visible, transparent, and informative. In sum, the two stocks reflect business confidence not only in two fundamental sectors of the Lebanese economy, the banking sector and the real estate sector, but also they permeate and reflect the business confidence in the whole country. The purpose of the present note is to answer four essential questions that every investor may ask. Are the two stocks too risky? Are the two stocks fairly priced? Is the stock market in equilibrium? And should the two stocks be recommended for purchase? Every question will be answered in sequence. The sample studied consists of monthly data from December 2007 till June 2022. All estimates and calculations appearing below can be requested from the author on request.

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Are the Solidere and BLOM Stocks correctly priced

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