INVESTDATA WEEKLY STOCK PICKS 6

Success in investments is a function of time, opportunity, right temperament and action. Traders and investors that positioned in the equities we recommended within the last two months(16th Feb. 2015) had recorded returns in excess of60 percent in just 38 trading sessions. Expectedly, stocks under our coverage rallied on the strength of earnings and corporate action declaration coupled with the peaceful conduct of the general election that the opposition is declared winner.

Empirically, based on our last recommendations, the following symbols had recorded unprecedented uptrend and made our discerning investors richer with positive risk adjusted returns in their portfolios in less than 60 days. This positive returns stands unequalled by any know investment vehicle within the same period.

Less than 60 days Returns for  Investdata Stock Picks
	Buy	Buy	Sell	Sell
Company	Date	Price	Date	Price	Return %
Dangote Cement	2/16/2015	N 141.90	4/10/2015	N180	26.85
Transcorp	2/16/2015	N2.28	4/2/2015	N3.64	59.65
Fcmb	2/16/2015	N2.00	4/2/2015	N3.32	66.00
ETI	2/23/2015	N16.00	4/10/2015	N19.60	22.50
Zenith Bank	2/23/2015	N17.37	4/2/2014	N24.27	39.73
Flourmill	2/23/2015	N31.48	4/10/2015	N35.70	13.40
Uacn Property	2/23/2015	N9.85	4/7/2015	N11.40	15.73
International Brew	3/2/2015	N17.99	4/7/2015	N22.80	26.73
National Salt	3/2/2015	N6.36	4/10/2015	N8.38	31.76
Okomu Oil	3/2/2015	N30.58	4/9/2015	N25.53	-16.51
Lafarge Africa	3/2/2015	N85	4/8/2015	N93	9.41
CCNN	3/9/2015	N11.46	4/8/2015	N11.74	2.44
Fcmb	3/9/2015	N2.40	4/10/2015	N3.50	45.83
FBNH	3/9/2015	N8.81	4/9/2015	N9.50	7.83
Diamond Bank	3/9/2015	N4.51	4/10/2015	N4.35	-3.54
Sterling Bank	3/16/2015	N2.40	4/8/2015	N2.36	-1.66
Dangote Sugar	3/16/2015	N6.30	4/8/2015	N7.44	18.09
FBNH	3/16/2015	N8.50	4/10/2015	N9.51	11.88
Okomu Oil	3/16/2015	N30.00	4/9/2015	N25.63	-14.56
National Salt	3/23/2015	N6.52	4/10/2015	N7.99	22.54
Sterling Bank	3/23/2015	N2.29	4/10/2015	N2.30	0.43
Dangote Sugar	3/23/2015	N6.10	4/10/2015	N7.30	19.67
FBNH	3/23/2015	N7.70	4/10/2015	N9.49	23.24

The reversal of the market composite index NSEASI on the last trading sessions of the week in the mixed of strong profit booking  with high volume of transactions are signal of new positioning by investors in stocks that are yet to mark down for dividend by taken advantage of the pullback. It was, however, a relief to see an upward reversal from the high and medium caps stocks. Let’s hope that it sticks.  The index closed lower at 34,930.02 from an opening figure of 35,728.12 with different of 798.10 basis points representing 2.23 percent decline.  Also the market capitalization dropped by 1.92 percent to N11.90 trillion.  As the market remain technically strong, we advise investors to accumulate in tranches the following symbols in the week under review as we expect them to record positive outing this week.

ACCESS BANK PLC (ACCESS)

This is a one shop financial institution that is into commercial banking, investment banking and securities trading with strong corporate, retail and investment banking products that are driving the impressive numbers being posted. Regardless of all the factors militating against the banking sector, its earnings are robust to support its share price for upside potential and with expected dividend payment if announced. The bank share price had suffered a loss of 58 percent in five months.

Company Figures                                 

Share Data	Ratio Analysis
Market Cap: N148.74Billion	Net Assets per share:N12.12
Net Assets: N277.41 Billion	Price/Book Value:  0.54
Shares Outstanding: 22.88 Billion	ROE: 15%
Current Price: N6.50	Div Yield: 9.23 %
52-Weeks High/Low N10.18/N4.50	EPS: 1.88
Year High/Low N7.02/N4.50	FY- PE ratio: 3.25

Source NSE,Coy&InvestData Research                                  

ACCESS BANK Chart

The chart above revealed that the stock had been trending down for a period of nine months before reversing in January and  recently forming a double tops pattern at the green resistance line. The stock is currently side-trending at N6.50 below the resistance level. It had touch different support level in an uptrend move at N5.60. Reversal signal is imminent as MACD is buy and RSI is still strong above 50.  As we expect the stock to retrace at this point to the first resistance line, which would give a return of 17.8%. The 2nd target is the red resistance level, which would give a return of 28.21%, and the 3rd target which is the last yellow resistance line with expected return of 36.78%. Any further break out below the last support level at N6.10 and a stop loss of 47 kobo which is anything not below N6.03 so that your capital can be protected from further loss. The upside potential of this stock is huge. The number of days it takes the stock to drop, may also be the same time to recovering depending on market forces as all elections are over now.

LAFARGE AFRICA PLC (WAPCO)

This is the second largest cement producing company in the country today, that is determined  to expand its capacity to boost its metric tons output. Its sustainable development know-how in the sector have started impacting its performance since 2013 and is likely to continue as Nigeria bridges its infrastructure gap to drive economic diversification.

Company Figures                                  

Share Data	Ratio Analysis
Market Cap: N409.99 Billion	Net Assets per share:N42.07
Net Assets: N191.62 Billion	Price/Book Value:  0.46
Shares Outstanding: 4.55 Billion	ROE: 18%
Current Price: N90.01	Div Yield:3.99
52-Weeks High/Low N136.73/N66.50	EPS: 7.61
Year High/Low N102/N75.10	FY- PE ratio: 11.11

Source NSE, Coy & InvestData Research

WAPCO Chart

Looking at the chart you can see that the stock came down when the major market correction started after the strong earnings and expectation has influenced price positively. But it has recently form a bull channel after it had touched the support line at N66.50. As we expect the stock retracement to the first black resistance line at N102, which would give a return of 13.23per cent. The second target is the resistance level, which is the green line, would give a return of 25.54 per cent and the third target is the red resistance line with expected return of 28.87 per cent. The last yellow resistance line would give a return of 37.76 percent. Any further break out below the new support level at N84 and a stop loss of N6 which is anything not below N84 so that your capital can be protected.  The upside potential of this stock is high with strong fundamental as the new government start economic reforms.

ZENITH INTERNATIONAL BANK PLC (ZENITH BANK)

This is a financial institution that is leading in profitability for two straight years with strong capital base and healthy risk management strategy. It ranks among the top 500 banks in the world and top two in the industry.
Its strong commercial banking with aggressive marketing and customer service delivery in investment banking, corporate banking and retail banking products that are driving the impressive numbers being posted. Regardless of all the factors militating against the banking sector, the bank's earnings are robust to support its share price for upside potential and with expected Q1 result if announced. 

Company Figures                                  

Share Data	Ratio Analysis
Market Cap: N738.45 Billion	Net Assets per share:N17.60
Net Assets: N552.64 Billion	Price/Book Value:  0.74
Shares Outstanding: 31.40 Billion	ROE: 18%
Current Price: N23.52	Div Yield: 7.4%
52-Weeks High/Low N25.80/N14.54	EPS: 3.17
Year High/Low N25.48/N14.54	FY- PE ratio: 6.00

Source NSE,Coy&InvestData Research                                 

ZENITH BANK Chart.

The chart above revealed that the stock had been form a cup and handle pattern for a period of nine months with strong support level at N15.50 with multiple touches. A new trend is imminent after a pullback as fund managers accumulate at the new price. Indicators like money flow, RSI, Bollinger band, MACD and candle stick confirm this reversal at the current market price.  As we expect the stock to continue to trend to the first red resistance line, which would give a return of 1.27 per cent. The second target is the resistance level at N25.38, which would give a return of 7.36 per cent, and the third target which is the measurement of the cup and handle with expected return of 31.91%. Any further break out below the support level at N21 and a stop loss of N1.50 so that your capital can be preserved.  The upside potential of this stock is huge especially now that the market peace and economic reforms to influenced.

FLOUR MILLS NIG. PLC. (FLOURMILL)

This company is into manufacturing and distribution of consumer staple products. Yes, it has been consistent in paying dividends but the payout has been up and down to reflect the earnings position of the company at a given time. The dwindling earnings of the company had further depressed its share price coupled with the bearish market.

Company Figures                                 

Share Data	Ratio Analysis
Market Cap: N89.22 Billion	Net Assets per share:N30.52
Net Assets: N80.08 Billion	Price/Book Value:  0.89
Shares Outstanding: 2.64 Billion	ROE: 4%
Current Price: N34.00	ROA: 1.01%
52-Weeks High/Low N75/N26.60	EPS: 1.26
Year High/Low N39.80/N26	Current PE ratio: 8.36

Source NSE, Coy &InvestData Research

Flour mills Chart

Looking at the chart you can see that the stock has been trending lower for a long time to five years low of N26.60 .This was after it had broken many support levels to touch the last green line where it reversed to usher in a new uptrend that is just starting. Traders and investors are to take position at the current price of N34 anything below makes the stock more attractive with high upside potential as the market expects its financials where the sale for its production line of cement will impact bottom line. The stock is currently side-trending but as it retrace back to the first orange resistance line, which would give a return of 8.58 per cent. The second target is the yellow resistance level after that, which would give a return of 20.08 per cent, the third target is the blue resistance level that would give a return of 50 per cent and the fourth target which is the last black resistance line with expected return of 79.41 per cent. Any further break out below the green line and a stop loss of N4 which is not below N30 so that your capital can be preserved.

Conclusion

The market finally appears to be placing weight on Q1 earnings. After being tossed about by the general elections which has come and gone. Investors confident again seem to have be rekindled as the new president  takes the mantle of leadership May 29, that the blue chips and mid-caps companies will post strong numbers our charts did not give us a signal either.