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Where to invest in second quarter
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Yet, some have lost money. This suggests that making money from the market requires strategic moves. It calls for timing of your actions.
One of such strategies is to take position in a stock at the end of each financial year and before the announcement of the company’s results. Some short term investors have made good money from stocks by investing on rumours of impressive results, dividend and bonus payment and if their perception is right, they strike it big by selling.
Following this principle, investors can reap good returns from stocks which financial year ends in March.
Allowing for the two to three months period of account auditing preceding the official release of financials and the holding of annual general meeting, the time to invest in such stocks is between now and May.
The stocks include First Bank, Union Bank, Afribank, Cappa D’Alberto, Seven-up, Flour Mills and Neimeth Pharmaceutical.
FBN
As the bank financial year ends in March, there are indication that gross earning and profit would almost double the previous year’s.
The bank’s third quarter result ending December 2007 shows increase in gross earning from N63.72 billion during the corresponding period in 2006 to N105.21billion. profit after tax grew from N14.82 billion to N25.92 billion.
By extrapolation, the final year result could be estimated at N35 billion and the stock of FBN is likely to rally on rumour of impressive dividend.
In 10 Months ending December 27, 2007, First Bank appreciated 13.2 percent. Although it lost 11.1 percent between January 3 and February 28, 2008, it rebounced 1.9 percent between January 3 and March 20, 2008.
During the last financial year, investors earned N1.63 from each share of First Bank, out of which they received N1.00 dividend per share. The bank recorded highest price of N57.41 and low of N32 per share. About three months into the current year, it has a high of N40.50 and given the growing liquidity in the market, the bank has the capacity of attaining or even exceeding its 2007 high of N50.33.
Union Bank
For the second quarter ended September 30, 2007, Union Bank’s gross earning was N50.35 billion, up from N37.9 billion. Profit after tax, increased from N8.4 billion to N13.5 billion, suggesting that audited profit after tax could hit N28 billion.
As at December 27, 2007, Union Bank appreciated 38.27 percent to close at N43.40 per share March 20, 2008. with year high of N45.09 per share, the bank could stage appreciable rallies before June.
With earning per share of N4.62 and dividend of N1.00 per share in the last financial year, improved dividend payment would stimulate upward movement in price.
Cappa D’alberto
The construction company recorded one of its most dramatic movements in price in the last couple of weeks from N94.62 February 28 and N146 March 20, 2008.
Between January 3, 2008 and February 28, it gained 95.86 percent and 201.7 percent from February 28, to March 20, 2008.
As investors expect its audited account for the year ended march, the company could exceed its previous year’s performance. Already, the interim result for the third quarter ended September 30, 2007 shows growth in turnover from N3.7 billion to N3.8 billion as profit after tax was up from N236.5 million to N309.5million.
If the current earning and dividend per share of N4.62 and 75 respectively are considered then, the company would pay good return to investors through capital gain and dividend for those that are likely to hold on to their shares by the end of the second quarter.
Flour Mills
Investors reaped 21.4 percent from flour mills through capital appreciation between January 3, and February 28, 2008 and 10.8 percent from January 3, to March 20, 2008. The company recorded its 2007 highest price of 85.88 and low of N63.50. Three months into 2008, its highest price is N106.58 with low of N80.00.
SEVEN UP
Impressive performance in its second quarter result for the period ended September 30, 2007 is an indication that the third and fourth quarter result of Seven-up would delight shareholders.
According to the report, the company recorded increase in turnover from N11.8 billion to N13.90 billion while profit after tax moved up by 48.97 percent from N440.10 million to N655.60 million.
Between January 3, and March 20, 2008, Seven-up has appreciated 15.8 percent and as the company’s financial year ends in March, investors who hold on to the stocks beyond May/June would grow their income through capital gain and dividend. This is because rise in price is expected, following anticipated impressive returns.
In 2007, Seven-up’s highest closing price was N54.60 with low of N39.74. Three months into the new year, it has recorded highest price of N58.90 and low of N45.80 per share.
Afribank
Afribank’s third quarter result shows 99.78 percent increase in turnover from N14.67 billion in 2005/06 to N29.31 billion December 31. 2007. Profit after tax grew from N2.4 billion to N7.5 billion .As the year ends in March, the audited result is expected to be an appreciable improvement over the previous year’s with possibility of price appreciation.
Ten months ending December 27, 2007 Afribank appreciated 164.9 percent. Although it lost 11.1 percent January 3, to February 28; 5.7 percent February 28 to March 20 and 15.2 percent in about three months, analysts believe it would rebound with announcement of impressive financials.
One of such strategies is to take position in a stock at the end of each financial year and before the announcement of the company’s results. Some short term investors have made good money from stocks by investing on rumours of impressive results, dividend and bonus payment and if their perception is right, they strike it big by selling.
Following this principle, investors can reap good returns from stocks which financial year ends in March.
Allowing for the two to three months period of account auditing preceding the official release of financials and the holding of annual general meeting, the time to invest in such stocks is between now and May.
The stocks include First Bank, Union Bank, Afribank, Cappa D’Alberto, Seven-up, Flour Mills and Neimeth Pharmaceutical.
FBN
As the bank financial year ends in March, there are indication that gross earning and profit would almost double the previous year’s.
The bank’s third quarter result ending December 2007 shows increase in gross earning from N63.72 billion during the corresponding period in 2006 to N105.21billion. profit after tax grew from N14.82 billion to N25.92 billion.
By extrapolation, the final year result could be estimated at N35 billion and the stock of FBN is likely to rally on rumour of impressive dividend.
In 10 Months ending December 27, 2007, First Bank appreciated 13.2 percent. Although it lost 11.1 percent between January 3 and February 28, 2008, it rebounced 1.9 percent between January 3 and March 20, 2008.
During the last financial year, investors earned N1.63 from each share of First Bank, out of which they received N1.00 dividend per share. The bank recorded highest price of N57.41 and low of N32 per share. About three months into the current year, it has a high of N40.50 and given the growing liquidity in the market, the bank has the capacity of attaining or even exceeding its 2007 high of N50.33.
Union Bank
For the second quarter ended September 30, 2007, Union Bank’s gross earning was N50.35 billion, up from N37.9 billion. Profit after tax, increased from N8.4 billion to N13.5 billion, suggesting that audited profit after tax could hit N28 billion.
As at December 27, 2007, Union Bank appreciated 38.27 percent to close at N43.40 per share March 20, 2008. with year high of N45.09 per share, the bank could stage appreciable rallies before June.
With earning per share of N4.62 and dividend of N1.00 per share in the last financial year, improved dividend payment would stimulate upward movement in price.
Cappa D’alberto
The construction company recorded one of its most dramatic movements in price in the last couple of weeks from N94.62 February 28 and N146 March 20, 2008.
Between January 3, 2008 and February 28, it gained 95.86 percent and 201.7 percent from February 28, to March 20, 2008.
As investors expect its audited account for the year ended march, the company could exceed its previous year’s performance. Already, the interim result for the third quarter ended September 30, 2007 shows growth in turnover from N3.7 billion to N3.8 billion as profit after tax was up from N236.5 million to N309.5million.
If the current earning and dividend per share of N4.62 and 75 respectively are considered then, the company would pay good return to investors through capital gain and dividend for those that are likely to hold on to their shares by the end of the second quarter.
Flour Mills
Investors reaped 21.4 percent from flour mills through capital appreciation between January 3, and February 28, 2008 and 10.8 percent from January 3, to March 20, 2008. The company recorded its 2007 highest price of 85.88 and low of N63.50. Three months into 2008, its highest price is N106.58 with low of N80.00.
SEVEN UP
Impressive performance in its second quarter result for the period ended September 30, 2007 is an indication that the third and fourth quarter result of Seven-up would delight shareholders.
According to the report, the company recorded increase in turnover from N11.8 billion to N13.90 billion while profit after tax moved up by 48.97 percent from N440.10 million to N655.60 million.
Between January 3, and March 20, 2008, Seven-up has appreciated 15.8 percent and as the company’s financial year ends in March, investors who hold on to the stocks beyond May/June would grow their income through capital gain and dividend. This is because rise in price is expected, following anticipated impressive returns.
In 2007, Seven-up’s highest closing price was N54.60 with low of N39.74. Three months into the new year, it has recorded highest price of N58.90 and low of N45.80 per share.
Afribank
Afribank’s third quarter result shows 99.78 percent increase in turnover from N14.67 billion in 2005/06 to N29.31 billion December 31. 2007. Profit after tax grew from N2.4 billion to N7.5 billion .As the year ends in March, the audited result is expected to be an appreciable improvement over the previous year’s with possibility of price appreciation.
Ten months ending December 27, 2007 Afribank appreciated 164.9 percent. Although it lost 11.1 percent January 3, to February 28; 5.7 percent February 28 to March 20 and 15.2 percent in about three months, analysts believe it would rebound with announcement of impressive financials.
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