SMN Top 5.(2nd quarter result)
July 5th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
After about 5 months of active trading on the SMN (StockMarketNigeria) top 5 stocks for 2007, things are indeed beginning to become interesting as we are indeed acheiving good results. The summary for the second quarter ended June 30, 2007 is detailed below.
Intercontinental Bank Plc
At the end of the second quarter, the shares of the bank had been sold because we believe that investors were not really happy with dividend payout, and this has been inpacting on the price since then. The dilution of the company shares due to foreign investors was responsible for this. This might be a temporary thing, but since we are doing more of trading in order to increase the value of our portfolio, we sold off. We bought 456 units at N20.25 and sold at N25.61, representing an appreciation of 26.46 percent.
WAPCO
During the same period, we sold off the shares of WAPCO. This is due to the fact that the entry of Obajana Cement is going to stiffen competition and we stand a better chance with BCC instead of WAPCO. Their management is good, but the company wil not really create value for its shareholders in the short term. The price is still yet to recover from the by effect of the N1 dividend paid in their last financial year , which was not impressive and caused poeple to loose confidence in the company. We sold off at a loss though. We bought 118 units at N79.99 and sold at N70.15, representing a loss of 12.30 percent.
LASACO
This stock is the new kid on the block. The money generated from the sale of the above mentioned companies were used to purchase this stock. We believe that this stock has some intrinsic value that will continue to unfold as time goes by. We purchased 6000 units at N2.89 and the price closed at N3.46 on Friday 29,2007. This indicates an appreciation of 19 percent after about 1 month of purchase.
Oceanic Bank Plc.
After a public offer, the stock was lifted from technical suspension and has doing impressively well since then. 564 units were purchased at N19.53 and colsed at N26.40 on the last day of trading in June. This translates into 35.17 appreciation. The company just released an impressive 3rd quarter result which is already impacting on the price. We believe there is still room at the top for this bank and so, we will hold.
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