INVESTING WITH EARNINGS EXPECTATION IN NIGERIA

 

Earnings in any market situation bullish or bearish count.  The power of earnings in equity investment cannot be overemphasized.  Investors and traders have come to recognize the strength of earnings in relation to stock price movement and dividend payout.

WHAT YOU NEED TO KNOW:

      How regular these companies release their reports

      What is the trend of the earnings ( Increasing or Decreasing)

      Know the financial year end- January, March, April, May, June, July, September, October and December. etc

      Date of release ( Very Important )

      Qualification Date and Closure Date

      Market Hearsays ( Feelers in the market or rumor)

     Other Information.

Historically, the month of March and April are the peak of earnings season that comes with mixed reaction on the part of the market to numbers posted, making it an opportunity to hold stocks with potentials, position for companies that are yet release their full year earnings for the financial ended December 31, 2014.

Equally, quarterly earnings that are yet to be released and are likely to drive price if the numbers beat market expectations. So far, the earnings season have been mixed in terms of performance and reward to investors. First quarter earnings season has officially opened as Unity Bank, Unilever and Infinity Mortgage released their earnings last week and the companies’ performance were mixed

The blues chips and high cap stocks have underperformed in terms of dividend payment when compared with their share prices and the low price equities seems to be given more value to investors with high yield in dividend payout. 

If history is anything to go by, it may be difficult to state precisely what shape the Nigerian market would take with expectations of more audited and quarterly earnings in this post-election month.

When forecasting market performance this season, one needs to consider the factors that will likely drive price and these are strong earnings, dividends declared to shareholders and post-election expectation of reforms that would impact some industries or sector.

For example, our research has shown, that the market will remain strong and bullish if the numbers released are positive and impressive in addition to strong or improved macroeconomic indices and stable sociopolitical environment.

2015 appears to be a transition year with a difference. It will be a year of sixteen years of uninterrupted civil rule.

However, the outcome of the Presidential and National Assembly had shown where the country and economy is going.

The peaceful conduct of the elections and emergency of Gen Muhammadu Buhari as President-elect and spirit of sportsmanship shown by President Goodluck Jonathan has reduced anxiety of post-election violence.

Over all, we believe in Nigeria, we believe in unity in diversity and we believe that the election as the previous ones has come and gone as in the previous elections. 

We believe the market would come out strong, if there is no post-election violence with peaceful conduct of the election and the right economic reforms and policies.

This suggest that any position taken should be in stocks that have good fundamentals and strong prospect.

See the tables below for companies that are expected to release their full year and quarterly results in April. And also dividend income stocks to cash in your pocket now.

Note:

Taking position before these earnings reports hit the market create the wealth for investors who are proactive. When your expectations are not met exit the position immediately to cut loss and protect your capital.

The  dividend income stocks  to buy
1	company	Dividend	Bonus
2	Mcnicholas	4 kobo	1to 10
3	Trans- Nationwide	10 kobo
4	Total oil Nigeria	N9.00
5	Nahco	20 k	1 to 10
6	Livestock	10 k
7	Mobil oil	N6.60
8	Caverton offshore	10 k
9	UACN	N1.75
10	Fidelity Bank	N0.18
11	Fidson	N0.15
12	Lafarge Africa	N3.60
13	Access Bank	N0.35
14	GSK	N0.75	1;4
15	UACN Property	N0.50
Full Year Expected Earnings in April
1	A.G Levelis	8	Multiverse Resources
2	Arbico	9	Airline service
3	Dangote sugar	10	Capital hotel
4	Eco bank	11	National Salt
5	UBN	12
6	NPE Micro finan	13
7	Skye bank	14
First Quarter Earnings Expected in April
	Securities
1	Livestock Feed
2	A.G Leventis
3	SOCA Nigeria
4	Transnational Corp
5	UACN
6	UACN Property
7	Cadbury
8	Champion
9	Nestle Nigeria
10	NB
11	Unilever
12	Vitafoam
13	African Prudential
14	Custodian & Allied
15	Diamond Bank
16	FBNH
17	FCMB
18	Fidelity Bank
19	GTBank
20	Mansard Insurance
21	NPF Microfinance
22	Skye Bank
23	Stanbic IBTC
24	Sterling Bank
25	UBA
26	Unity Bank
27	Wema Bank
28	Zenith Bank
29	GSK
30	May & Baker
31	Pharm Deko
32	Courtevil Business
33	Berger Paints
34	CAP
35	CCNN
36	Dangote Cement
37	Lafage Africa
38	Portland Paints
39	Premer Paints
40	First Alumumm
41	Boc Gases
42	Eterna
43	Forte Oil
44	Mobil
45	Nahco
46	Trans-Nationwide