Stocks to watch this week, as trading resumes are Guaranty Trust Holding Company (GTCO), Ellah Lakes and MTN Nigeria.
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.
Guaranty Trust Holding Company
Guaranty Trust Holding Company (GTCO) disclosed last week that its net profit fell -2.33% in the first half of 2022, and in response, shareholders engaged in a sell off, resulting to GTCO’s share depreciating by -1.01%.
With GTCO ending last week’s stock activities as one of the losers, it will begin this week’s session from the same decliners table, so investors trading cautiously is suggested, as shareholders might still be in a sell off mood on the back of the poor net profit.
Last week, Ellah Lakes signed a deal with the Enugu State Government to take over the management and operations of Adarice Farms & Associated Assets from the Government.
Such deal is expected to increase the earnings of Ellah Lakes, which in return, could enable the management of the firm to improve shareholders’ investment through increased dividends if the farm moves from its current sub-optimal level to operating optimally.
The farm is home to Rice, Soybean and Cassava, which further expands the revenue sources of Ellah Lakes.
The telecommunications company plans to borrow new loan of N23 billion to fund its working capital and general corporate purposes.
While the loan is being sourced through its Series 3 Commercial Notes Paper, the N23 billion is expected to raise the financial liabilities of MTN Nigeria, increasing the burden on its quarterly or yearly earnings.
It could also discourage demand for MTN Nigeria share, considering the firm will be paying its skyrocketing debt of N646.11 billion, which rose from N493,26billion in December, from its retained earnings in the next five years and more.
This could affect the firm’s ability to raise dividends and improve shareholders’ investment in the long run, hence, discouraging interest. Already, MTN share is down -25.9% since the stock hit 52 weeks high of N270 on May 19, and has crashed to N200 on the back of low demand and investors lack of confidence in the firm’s growth prospect.
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