As the light fades out on the window for releasing 2021 corporate earnings reports, traders’ and investors’ gaze will be shifting to the financials for the period from January to March, which in all likelihood will have a broad indication for the market’s fate in the short term.
A new impetus for trading in Nigerian stocks came last Thursday on launch of West Africa’s first exchange-traded derivatives market in Lagos, offering investors a platform to transact in stock futures starting NGX 30 Index and NGX Pension Index.
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 but a stock investment guide. You may have to involve your financial advisor before taking investment decisions.
LIVING TRUST MORTGAGE BANK
Living Trust leads this week’s pick on the back of a two-fold and a half jump in after-tax profit for the first quarter that took bottom line to N247.1 million, assisted by a much-improved revenue which doubled over the figure reported a year ago.
United Capital makes the pack by virtue of its considerable profit and earnings growth for the three months to March. The investment bank saw its turnover enlarge by 35 per cent and net profit more than a third to N2.3 billion in period under review.
BUA Foods features on this week’s selection for declaring a N3.50 per share dividend for last year, a period when revenue grew by 72.8 per cent and profit surged to N69.8 billion, roughly twice as much as that of a year ago.
Chams appears on the pick for currently trading close to the lowest share price level allowed by the Nigerian Exchange (N0.20), implying investors planning to plough in cash into the company’s common stock have a reasonable comfort in terms of the pricing at the entry point.
Chams closed trading at N0.20 per unit at the last session with a PE ratio of 12.7x and an EPS of N0.01.
ECOBANK TRANSNATIONAL INCORPORATED (ETI)
ETI makes this week’s selection for currently trading well below its intrinsic value, improving its possibility of seeing considerable price appreciation in future.
The transnational lender’s PE ratio at the close of the last trading session stood at 2.71x, with an EPS of N4.40.
Learn Africa features on the pick for trading significantly below its actual value at the moment, which brightens the chances of its share price appreciation in future.
The publisher’s PE ratio was 4.53x as of the end of the last trading session, while its EPS is N0.50.
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