The positive vibration in the stock market, triggered by impressive Q4 earnings was sustained last week as NGXASI closed higher by 2.33% week on week. There is renewed optimism by investors as they take position ahead of Audited results and dividend declaration.
The outlook for the month of February is projected to be positive for the market based on expected Audited reports with dividend declaration.
Commenting on the market expectation for the month of February, the MD/CEO of Global View Capital Limited, Aruna Kebira stated thus:
“The market will continue to look forward, though there will be temporary profit taking. What we will be seeing is portfolio realignment and rebalancing; that is, people exiting from one stock to take position in a more profitable stock.
I believe that between now and when we begin to see the dividend declared in the market, the market will not be looking down. The results we have seen is unaudited where dividends are not declared. As we begin to look forward, by the end of this month we will begin to see audited reports and dividend declarations. That will further move liquidity into the market”.
STOCKS TO WATCH
ECOBANK
The impressive Q4 earnings of Ecobank push the share price to as high as N13.10. It is now trading around N12.10. A position in Ecobank based on its fantastic Q4 earnings is a wise decision as the stock is under-priced even at the current share price. A book value of N49.21 relative to its current share price of N12.10 is a pointer that there is uptrend potential in Ecobank Transnational Incorporated.
GUINNESS
The market did not actually allow it to rally for more than a day. This means that that information that make the stock to rally the day the result was released is still held within the stock. It closed at N48.55 on Friday. So there is possibility of rallying in Guinness.
The Q2 result of Guinness shows year on year growth in the company’s top line and bottom line figures.
A turnover of N109.12 billion was reported for the 6 months period, up by 50.83% from N72.35 billion reported the previous year.
Profit after tax grew by 2878.91% to N8.82 billion from the Loss after tax of N317.42 million reported the previous year.
Earnings per share of Guinness grew to N4.03 from the EPS of -14 kobo achieved the previous year.
PRESCO
The Q4 result of Presco was very impressive as it achieved growth in its topline and bottom line figures.
A turnover of N47.229 billion was reported for the 12 months period, up by 97.68% from N23.892 reported the previous year.
Profit after tax grew by 258.57% to N18.868 billion from N5.262 billion reported the previous year.
Earnings per share of the company increased to N18.87 from the EPS of N5.26.
When the Q4 result was released, the share price got to N105. It eventually closed on Friday at N94.50. It is another opportunity to take position.
FIDSON
Fidson Healthcare achieved significant growth in its top line and bottom line figures in Q4 2021.
A turnover of N30.743 billion was reported for the 12 months period, up by 68.22% from N18.276 billion reported the previous year.
Profit after tax grew by 155.52% to N3.079 billion from N1.205 billion profit reported the previous year.
Earnings per share of Fidson increased to N1.48 from the EPS of N0.58. This translates to 155.52% growth year on year.
On the strength of the impressive Q4 result, the share price of Fidson went as far as N8.20. It eventually closed at N8.11 on Friday. Fidson is a good BUY if one can get it around N7.50.
ACCESS BANK
The audited report of Access Bank is expected to be good as Q1, Q2 and Q3 earnings of the bank in 2021 were consistently impressive.
The Bank increased its interim dividend pay out to 30 kobo from 25 kobo. This implies that there is tendency for them to increase their final dividend to about 70 kobo from 55 kobo final dividend declared the previous year.
At the share price of N10.20, Access Bank is considered cheap as it is trading below its book value of
N22.49.
FBNH
The share price of FBNH closed at N11.10. It has gone as far N12.90 in the past 52 weeks. A position in FBNH has an uptrend potential of N13.95% relative to its year high of N12.90. By the time the audited report of FBNH is out, it will move the price higher than the current price.
With the book value of N20.99, relative to its current share price ofN11.10, FBNH is considered cheap.
ZENITH BANK
Zenith Bank has consistently over the years paid dividend to its shareholders. The bank has also consistently recorded growth in its audited reports for the past five years.
Zenith Bank is expected to pay at least N2.70 as final dividend. That is 10.25% dividend yield, relative to its current price of N26.35.
The Bank is trading below its book value of N37.81, which affirms an uptrend potential for Zenith Bank.
COURTEVILLE
Courteville Business Solution reported a fantastic Q4 earnings with growth in turnover and profit after tax.
A turnover of N1.796 billion was reported for the 12 months period, up by 6.24% from N1.690 reported the previous year.
Profit after tax grew by 119.48% to N377 million from N154 million reported the previous year. The earnings per share increased to 9 kobo from the EPS of 4 kobo.
The share price of Courteville in recent weeks moved from 35 kobo to a year high of 65 kobo. It closed on Friday at 53 kobo. A position in Courteville is a good BUY at the current price.