INVEST DATA WEEKLY STOCK PICKS 7
The market recovered after a serious profit booking by traders and market players from unprecedented rally that followed the peaceful conduct of March election and subsequent declaration of the winner. The impressive first quarter earnings that's tickling in would support the bull transition as the few scorecards released so far were more of financial services providers and the numbers were strong.
The composite index NSE ASI for the week recorded a marginal rise of 0.21 percent to close higher at 35,005.05. In the same vein, the market capitalization recorded 0.21 percent growth in one week to close at N11.93 trillion.
STOCKS FOR THE WEEK
OANDO PLC (OANDO)
This is the largest integrated energy solution in Africa and a holding company within its group. Its business is organized into six division operating in the downstream, mid-stream and upstream of its industry. Also carrying out business in marketing, supply & trading, terminal & logistic, gas & power, energy service and exploration & production.
The company's strategy to increase its presence in the mid-stream and upstream led to the acquisition of Conoco Phillips business in Nigeria to boost profitability level.
This is the largest integrated energy solution in Africa and a holding company within its group. Its business is organized into six division operating in the downstream, mid-stream and upstream of its industry. Also carrying out business in marketing, supply & trading, terminal & logistic, gas & power, energy service and exploration & production.
The company's strategy to increase its presence in the mid-stream and upstream led to the acquisition of Conoco Phillips business in Nigeria to boost profitability level.
Company Figures
Share Data
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Ratio Analysis
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Market Cap: N164.98 Billion
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Net Assets per share:N23.70
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Net Assets: N215.28 Billion
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Price/Book Value: 0.76
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Shares Outstanding: 9.08 Billion
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ROE: 4.97%
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Current Price: N18.16
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Div Yield:5.51%
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52-Weeks High/Low N36.89/N13.18
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EPS: 1.17
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Year High/Low N18.40/N12.83
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Current PE ratio: 5.16
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Source NSE, Coy & InvestData
Research
OANDO Chart
Looking at the chart you can see that the stock came
down gradually with the oil price before the major market correction that kept
the southward movement to a support level of N12.83.But it recently reversed to
form up trend after the elections. As we expect the stock to maintain
up-trend on the green line to the first resistance line at N20 to give a
return of 10.13 per cent.
The second target is the yellow resistance level, which is the green line, would give a return of 25.59 per cent and the third target is the brown resistance line with expected return of 32.16 per cent.
The last blue resistance line would give a return of 48.68 percent. Any further break out below the new support level and red line at N16 and a stop loss of N1.66 which is anything not below N16 to protect your capital from further loss. The upside potential of this stock is high because of the company closeness to the new government.
It may also take shorter period for it to recover if the company's earnings beat market expectation.
The second target is the yellow resistance level, which is the green line, would give a return of 25.59 per cent and the third target is the brown resistance line with expected return of 32.16 per cent.
The last blue resistance line would give a return of 48.68 percent. Any further break out below the new support level and red line at N16 and a stop loss of N1.66 which is anything not below N16 to protect your capital from further loss. The upside potential of this stock is high because of the company closeness to the new government.
It may also take shorter period for it to recover if the company's earnings beat market expectation.
INTERNATIONAL BREWERIES
PLC. (INTBREW)
This is a brewery company that moved from comatose situation in the past years to vibrancy with increased capability in production to meet enhanced market penetration and share. Improvement in the company's earnings performance in the recent times showed acceptability of its products in the market place. Its holding structure is expected to support the company's share price as foreign investors are there for long time.
This is a brewery company that moved from comatose situation in the past years to vibrancy with increased capability in production to meet enhanced market penetration and share. Improvement in the company's earnings performance in the recent times showed acceptability of its products in the market place. Its holding structure is expected to support the company's share price as foreign investors are there for long time.
Company Figures
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Share Data
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Ratio Analysis
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Market Cap: N67.57 Billion
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Net Assets per share:N3.50
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Net Assets: N11.67 Billion
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Price/Book Value: 5.02
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Shares Outstanding:3.26Billion
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ROE: 12%
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Current Price: N20.71
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Div Yield: 1.78%
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52-Weeks High/Low N32.00/17.02
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EPS: 0.44
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Year High/Low N23.37/N17.02
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Current PE ratio: 4.49
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Source NSE, Coy & InvestData
Research
INTBREW Chart.
The chart above revealed that the stock had been
trending down for a period of five months with strong support levels broken at
a different prices to a reversal point of N17.02 with high volume and later
form double bottoms. The recent pull-back after the rally is to create
opportunity for new entrants.
Indicators like money flow, RSI, Bollinger band, MACD and candle stick confirm reversal imminent and will ride on the market forces to sustain the rally. As we expect the stock to reverse to the first black resistance line, which would give a return of 10.47 per cent. The second target is the red resistance level at N24.23, which would give a return of 17 per cent, and the third target which is the last orange resistance line with expected return of 25.54 percent.
Any further break out below the green line at N19.10 and a stop loss of N1.60 so that your capital can be protected. The upside potential of the stock is huge especially now that the market is expecting its earnings.
Indicators like money flow, RSI, Bollinger band, MACD and candle stick confirm reversal imminent and will ride on the market forces to sustain the rally. As we expect the stock to reverse to the first black resistance line, which would give a return of 10.47 per cent. The second target is the red resistance level at N24.23, which would give a return of 17 per cent, and the third target which is the last orange resistance line with expected return of 25.54 percent.
Any further break out below the green line at N19.10 and a stop loss of N1.60 so that your capital can be protected. The upside potential of the stock is huge especially now that the market is expecting its earnings.
NATIONAL SALT CO. NIGERIA PLC (NASCON)
This company is into salt production, marketing and distribution, alongside other food ingredients that support cooking. The entrance of the Dangote group into the company has revitalized and repackaged the company for sustainable profit and which led to increased dividend payout in recent years.
This company is into salt production, marketing and distribution, alongside other food ingredients that support cooking. The entrance of the Dangote group into the company has revitalized and repackaged the company for sustainable profit and which led to increased dividend payout in recent years.
Company Figures
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Share Data
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Ratio Analysis
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Market Cap: N22.49 Billion
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Net Assets per share:N2.81
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Net Assets: N5.86 Billion
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Price/Book Value: 2.26
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Shares Outstanding: 2.65 Billion
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ROE: 27%
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Current Price: N8.49
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Div Yield: 14.15%
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52-Weeks High/Low N13.48/N5.68
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EPS: 0.59
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Year High/Low N8.68/N5.68
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Current PE ratio: 3.49
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Source NSE, Coy & InvestData Research
NASCON Chart
Looking at chart above it shows that the stock had been trending down for more than 10 months with strong support level at N5.68 with multiple touches on the black line to form a double bottom that ushers in the up trending. Indicators like money flow, RSI, Bollinger band, CCI and candle stick confirm STRONG reversal.
As we expect the stock to continue to trend to the first green resistance line, which would give a return of 5.18 per cent. The second target is the orange resistance level at N11.05, which would give a return of 27.67 per cent, and the third target which is the last green resistance line with expected return of 40.00 percent.
Any further break out below the support level at N5.68 and a stop loss of 80k so that your capital can be preserved. The upside potential of this stock is high especially now that the market is expecting its full year earnings report.
UNITED CAPITAL PLC (UBCAP)
This is a financial and investment services power house
providing bespoke value-added service to its clients. The company is standing
on four pillar investment banking, Asset management, united capital trust and
united securities. United capital plc has demonstrated strength since it
was listed on the exchange through its earnings power and dividend payout. Its
earnings and assets are robust to support its share price going forward.
The upside potential of its share value is high but depending on market sentiment and forces.
The upside potential of its share value is high but depending on market sentiment and forces.
Company
Figures
Share Data
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Ratio Analysis
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Market Cap: N9.72 Billion
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Net Assets per share:N1.61
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Net Assets: N9.67 Billion
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Price/Book Value: 0.99
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Shares Outstanding: 6 Billion
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ROE: 7.32%
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Current Price: N1.62
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Div. Yield: 12.34 %
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52-Weeks High/Low N3.04/N1.38
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EPS: 0.12
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Year High/Low N1.81/N1.27
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Current PE ratio: 3.37
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Source
NSE,Coy & InvestData Research
UNITED
CAPITAL Chart
The chart above revealed that the stock had been
trending down for a period more than one year, forming a bear channel and
the stock was trading within the channel. The recent double bottom pattern had
usher in uptrend.
The imminent breakout of the channel is high as MACD, RSI and Money flow index confirm the continuation of the uptrend. As the stock TREND toward the first green resistance line, which would give a return of 11.72 per cent. The second target is the yellow resistance level, which would give a return of 17.28 per cent, and the third target which is the blue resistance line with expected return of 30.86 per cent. The red resistance level which is the last is expected to give return of 40.12 percent if it breakout.
Any further break out below the first support level at N1.38 and a stop loss of 25k which is anything not below N1.38 so that your capital can be protected from any further loss.
The imminent breakout of the channel is high as MACD, RSI and Money flow index confirm the continuation of the uptrend. As the stock TREND toward the first green resistance line, which would give a return of 11.72 per cent. The second target is the yellow resistance level, which would give a return of 17.28 per cent, and the third target which is the blue resistance line with expected return of 30.86 per cent. The red resistance level which is the last is expected to give return of 40.12 percent if it breakout.
Any further break out below the first support level at N1.38 and a stop loss of 25k which is anything not below N1.38 so that your capital can be protected from any further loss.
Conclusion.
We expect the recovery to continue this week as more
quarterly earnings are likely to hit the market.
This will allow new entrance to take position for cash dividend in companies that had released result and in others that are yet to release results but have the capacity to pay dividend. Investors should position in fundamentally strong companies that are trading at a discount.
This will allow new entrance to take position for cash dividend in companies that had released result and in others that are yet to release results but have the capacity to pay dividend. Investors should position in fundamentally strong companies that are trading at a discount.
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