INVESTDATA WEEKLY STOCK PICKS

At the early hour of trading yesterday the bull were in charge as low caps stocks were leading the gainers chart and the market was framing up before the high caps equities gave way as price suffer declined to pull down the NSE ASI. The reverse in momenturn did not impaired bargain hunters accumulating some stocks that are undervalued with huge upsidepotential when the bull transition takes over. The NSE Composite index was down and still trading below its 50 and 200 days moving average at 33,590.33 with improved volume compared to lastFriday traded volume. The decliners outnumbered advancers in the ratio of 26 to 15, following which market capitalization closed at N11.47 trillion.

STOCKS TO TRADE

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.

Company Figures                                 

Share Data	Ratio Analysis
Market Cap: N8.40 Billion	Net Assets per share:N1.61
Net Assets: N9.67 Billion	Price/Book Value:  0.89
Shares Outstanding: 6 Billion	ROE: 7.32%
Current Price: N1.44	Div. Yield: 13.88 %
52-Weeks High/Low N3.04/N1.38	EPS: 0.12
Year High/Low N1.81/N1.27	Current PE ratio: 3.05

Source NSE,Coy&InvestData Research                                 

UUNITED CAPITAL Chart

The chart above revealed that the stock had been trending down before becoming a trendy stock to recently form a symmetrical triangle. The strong support price of the stock are N1.27 and N1.34 were a reversal signal is confirm by stochastic oscillator, RSI and Money flow indicating continuation of the uptrend depending on the market forces. As the stock TREND toward the first red resistance line, which would give a return of 4.17 per cent. The second target is the yellow resistance level, which would give a return of 12.5 per cent, and the third target which is the black resistance line with expected return of 16.67per cent. The orange resistance level which is the last is expected to give return of 26.39 percent if it breakout. 
Any further break down below the first support level at N1.34 and a stop loss of 10k which is anything not below N1.34 so that your capital can be protected from any further loss.

TRANSNATIONAL CORPORATION OF NIGERIA PLC (TRANSCORP)

This is a holding company that is well positioned in the major sector of the economy, agriculture, hospitality, power, oil and gas. These sectors are the drivers of Nigeria economy. In recent years the company performance had improved as numbers posted beat projections and market expectations. Share price also trended up in the same direction with earnings but came down with the market bearish direction and state.  The expected full year results will drive the price if the numbers beat market expectation. The stock had loss 207 percent in just six months due to prolonged bear market.

Company Figures

Share Data	Ratio Analysis
Market Cap: N115.00 Billion	Net Assets per share:N2.37
Net Assets: N91.95 Billion	Price/Book Value:  0.95
Shares Outstanding: 38.72 Billion	ROE: 2.39%
Current Price: N2.97	Div Yield:2.02%
52-Weeks High/Low N7.08/N2.19	Q1 EPS: 0.06
Year High/Low N3.22/N2.19	Current PE ratio: 13.11

Source NSE,Coy&InvestData Research                                 

TRANSCORP Chart

Looking at the chart you can see that the stock came down a long way for almost six months due to market sentiment toward the elections, and several support level were broken as it makes lower lows to reflect market perception of the stock. The reversal trend started at N2.19 support level and since them it has been made higher highs as the indicators like money flow, RSI, Bollinger band, stochastic oscillator and CCI are signalling buy at the current market price.  As the stock retrace to the first red resistance line, which would give a return of 6.06%. The 2nd target is the yellow resistance level after that, which would give a return of 20.88%, the 3rd target is the next orange resistance level that would give a return of 33.67% and the 4th target is the last orange resistance line with expected return of 44.78%. Any further break down below the new support priceN2.73 and a stop loss of 24 kobo which is anything not below N2.73 so that your capital can be protected from further losses.  The upside potential of this stock is high.

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 interim dividend in the nearest future. The bank share price had suffered as it trades at discount with high margin of safety.

Company Figures                                 

Share Data	Ratio Analysis
Market Cap: N138.44Billion	Net Assets per share:N12.81
Net Assets: N293.21 Billion	Price/Book Value:  0.47
Shares Outstanding: 22.88 Billion	ROE: 15%
Current Price: N6.05	Div Yield:9.92%
52-Weeks High/Low N10.18/N4.50	Q1 EPS: 0.60
Year High/Low N7.02/N4.50	PE ratio: 2.64

Source NSE,Coy&InvestData Research                                 

ACCESS BANK Chart

Looking at the chart you can see that the stock had been trending up for a period of five months making higher highs with a bull channel pattern with multiple bottoms at the red line support level. The stock had pullback recently to create opportunity for new positioning. Stochastic Oscillator signaledreversal and RSI is below 50 currently at 40.84 level.  As market expect the stock to retrace at this point to the first green resistance line, which would give a return of 4.13 percent. The 2nd target is the black resistance level, which would give a return of 10.74 percent, and the third target which is the yellow resistance line with expected return of 21.16 percent. As before, investors who purchase shares to hold could be well rewarded in the long term. Any further breakdown below the last support level at N5.73 and a stop loss of 32 kobo which is anything not below N5.73 so that your capital can be protected from further loss. The upside potential of this stock is huge watch it.

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. 

Company Figures                                 

Share Data	Ratio Analysis
Market Cap: N621.72 Billion	Net Assets per share:N16.77
Net Assets: N526.43 Billion	Price/Book Value:  1.18
Shares Outstanding: 31.40 Billion	ROE: 5.26%
Current Price: N19.80	Div Yield: 8.84%
52-Weeks High/Low N25.80/N14.54	Q1 EPS: 0.88
Year High/Low N25.48/N14.54	Q1- PE ratio: 5.63

Source NSE,Coy&InvestData Research                                 

ZENITH BANK Chart.

The chart above revealed that the stock had form bullish channel with strong support level at N16.49 and N19.20 respectively. The recent pullback is an opportunity to position alongside with smart money that are accumulating at the new price. Indicators like money flow, RSI, Bollinger band, MACD and candle stick signal reversal imminent at the current market price.  As we expect the stock to reverse to the first red resistance line, which would give a return of 5.86 per cent. The second target is the yellow resistance line, which would give a return of 15.40 per cent, and the third target is the blue resistance line, which is expected return of 20.70percent. Any further break down below the support level at N18.75 and a stop loss of N1.05 so that your capital can be preserved.  The upside potential of this stock is huge especially now that CRR have been review downward and the market expects economic policy statement from the government to give direction.