Caverton, Sterling Bank, Oando are stocks to watch this week

The Nigerian capital market resumes for another five days of trading this week, with Caverton, Sterling Bank and oil & gas company, Oando appearing on Ripples Nigeria stocks to watch.

Ripples Nigeria stocks watchlist is a selection of stocks monitored for viable trading or investing opportunities. An investor may casually generate a list of equities for investment purposes. But we have taken the pain to do that based on certain parameters in order to save you that hassle.

Kindly note that Ripples Nigeria Stocks Watchlist is not a buy, sell or hold recommendation. It is advisable to consult your financial advisor before making any investment decision.

Caverton

The company made it to the stocks to watch list this week after over 2.56 million shares were sold off by Adeniyi Makanjuola, an investor in the company. The chairman, Aderemi Makanjuola, also sold 200,000 shares through his firm, Molar Vessels Supply Limited, on June 7.

The Makanjuolas sold the shares amid the companies struggles maintaining one of its major client, Chevron, after losing the oil and gas firm’s contract to Bristow Helicopters.

This sell off might have a negative impact on Caverton’s share going forward, as minority investors might see the sell off by both brothers as a cue to exit their investment over impending fall.

Sterling Bank

After Sterling Bank Managing Director, Abubakar Suleiman, and three other executive directors at the lender acquired over N42.36 million worth of shares, the bank became an asset to watch out for.

After depreciating by -24% between January 2021 till date in the capital market, the action of the management is either to try save Sterling Bank’s share or the directors see a growth prospects that is not yet visible to the market.

Read also: First Bank, McNichols, Int’l Breweries make stocks-to-watch list

Either ways, their share acquisition could be a big deal for shareholders investment in the long term, but investors need to trade with caution, as acquisitions by Suleiman and others might not be enough to prevent further sell off.

Oando

Oando is going private after years of operating as a public company. This is as 14 minority shareholders want to sell 299,257,869 shares to the Ocean and Oil Development Partners Limited (OODP), in what will be a share buyback.

Already, OODP has 57.37% ownership of Oando, adding the shares of the 14 minority shareholders to its stake will see OODP, co-owned by Wale Tinubu, Oando CEO, takeover 100%, leading to potential delisting, but the share acquisition has not been approved by regulators.

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