A couple of Nigerian stocks are still valued below their intrinsic value, which brightens their chance of appreciating in the short term or even longer while some recently received boost to their earnings capacity on account of completing some mergers and acquisition deals.
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.
GUARANTY TRUST HOLDING COMPANY (GTCO)
GTCO makes this week’s pick for trading pretty close to its lowest price in 52 weeks and for currently trading below its real value, which make it cheap for investment.
Dangote Sugar features on the selection on the basis of trading close to its lowest price in 52 weeks, making it a good entry point for potential investors. Its opening price on Monday is N16.45 per share
Ardova appears on this week’s list for trading close to its lowest price in 52 weeks and on the strength of potential boost to its earnings power after its takeover of rival Enyo Retail and Supply Limited.
The stock is currently priced at N13.60 per unit.
UNITED BANK FOR AFRICA (UBA)
UBA makes the pick by virtue of trading well below its intrinsic value.
The lender’s EPS stands at N3.98 and its PE ratio at 2.04, with a unit price is N8.10
Fidelity appears on this week’s list for currently trading well below its actual value, making it cheap for investment. It currently trades at N2.55, has a PE ratio of 2.25 and EPS of N1.13.
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