10/08/1996
Al-Ahram Newspaper 1996/AUGUST /10
Commodity stocks are not properly used in the Egyptian market in spite of their increasing value. According to Dr. Riad, they reflect a bad production method adopted by the Egyptian companies, as many of the stocks they invest in are eventually lost. This problem suggests that companies usually do not base their production on an accurate study of demand in the market, and put off selling their stocks even when there is no alternative to such an option. (Available in Arabic – German in PDF )
Commodity stocks are not properly used in spite of their increasing value. Eventually, they may be lost, and this undoubtedly affects companies’ production and profits. According to Dr. Nader Riad, this problem reflects the bad production method currently being adopted, which eventually leads to an accumulation of stocks and more wastes. He believes that when stocks are no longer profitable, they should be sold, with no hesitation. Otherwise, the company’s productive energy may be affected. Also according to a banking expert, the problem of commodity stocks reveals that some companies do not base their production on an accurate study of the targeted markets. He also affirms that commodity stocks sometimes reflect companies’ financial imbalance and their fear of selling at market prices, which results in low profits and the devaluation of the companies’ assets