As the Nigerian stock market resumes trading this week, investors need to watch out for the following equities; Neimeth, Cadbury Nigeria and Guaranty Trust Holding Company (GTCO).
These equities have been selected due to various reasons by Ripples Nigeria, and the factors that led to their selection are detailed below.
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.
Neimeth earnings is down, forcing the management to sell 12.83% of the pharmaceutical company to a private investor, as the board’s dependence on sales is not providing the necessary capital for operation.
This comes at a period investors holding its stock are taking out their funds in Neimeth by selling off their shares due to fear that their investment will turn negative – already, total shareholders investment is down -13.75% in three months.
With the company short on cash from sales and capital market, it plans to dilute its share to raise over N4 billion, a situation that could further affect the capital market’s confidence towards Neimeth – so when trading this week, do it with caution.
The manufacturer made the list due to its declining earnings reported by the Full Year Financial statements released last week, which shows profit after tax fell by -51.7%, despite revenue rising.
Cadbury Nigeria management are struggling to tame cost of production, which is eating into its turnover, and as well effecting its PAT, which drops N482.11 million in twelve months.
Its left to be seen how the capital market will react to this disclosure as the Nigerian bourse resumes days after the financials was released to the investing public.
Investors holding Guaranty Trust Holding Company (GTCO) shares lost -11.64% of their investment in ths financial company within five days, as the firm suffers from sell off among shareholders.
Shareholders are frightened that they will lose part of their funds in GTCO to the bears, resulting to some investors exiting their investment, dragging the value of the firm down on their way out of GTCO.
Investors confidence in GTCO is pretty low, hence its stock price falling from N26.20kobo per share to N23.15kobo, so trading on the shares of Guaranty Trust needs to be done with caution.
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