By reason of their natural responsiveness to earnings performance, the outlook for stocks this quarter will be dominantly defined by hordes of financial results for the accounting year ended December 2021.
Certain companies announced their closed periods last week, a signpost of the earnings season also a reminder that quite a number of annual reports will reach the market soon, providing early chances for investors to bet on promising equities ahead of release of a most banks’ financials that are hardly released before the butt end of the quarter.
Intriguingly, a few company results even came in earlier because of having an earlier year-end of September 30 and some of the scorecards were heartening.
PREMIUM TIMES has assembled a number of stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will gain value with the passage of time, particularly in the short term.
This is not a buy, sell or hold recommendation. You may have to involve your financial advisor before taking investment decisions.
Vitafoam leads the pack for proposing a dividend of N1.50 per share for the year ended September 30, 2021, more than twice what it declared for the preceding accounting year.
The company, a manufacturer of mattresses alongside home and office furniture, posted a jump of 51 per cent in turnover to N35.4 billion and of 12 per cent in profit to N4.6 billion for the period.
Those desiring to enjoy the cash reward are to invest in the firm’s shares by February 11, while payment is timed for March 4.
NEIMETH INTERNATIONAL PHARMACEUTICALS
Neimeth makes the cut for declaring a dividend of N0.07 per share for the full year to September 2021, which compares to N0.05 declaration a year ago, helped by a profit surge of 27.3 per cent.
The qualification date is March 14, with payment planned to happen on March 25.
Ardova features on the selection for trading near its lowest price in 52 weeks, which makes a reasonably safe entry point for investors seeking stocks offering a good bargain. It’s opening price on Monday is N13.4. per unit at a price-to-earnings (PE) ratio of 14.02 and earnings per share (EPS) of N0.93.
ECOBANK TRANSNATIONAL INCORPORATED (ETI)
ETI appears in the pick on account of currently trading below its intrinsic value. The financial lender’s EPS stands at N3.63, with a PE ratio of 2.41 at an opening price of N8.70 per share.
Custodian appears in the selection for trading below its actual value, implying it stands a good chance of price appreciation in the future
The opening price of shares in the financial services firm stands at N7.90, with EPS of N1.89 per unit and PE ratio of 4.18
NPF MICROFINANCE BANK
NPF Microfinance makes the pick for trading much lower below its real value. Shares in the company are priced at N1.70 per unit at the opening of the market on Monday at a PE ratio of N1.70 and EPS of N0.36.
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