If you bought Transcorp shares about 6 months ago when it was N1.8 and still hold it, that stock would be worth almost 2x that amount today. In fact, as at December it was 3x more. The rally off course coincided with their acquisition of Ughelli power plant back in November followed by some good PR stunts by the management.
Transcorp shares have since dropped from its high of N5 plus to under N4 but with its recently announced results the share price could be in for some rally. The results followed announcement that it will pay its first ever dividends signaling a sign that they have indeed turned the Corner.
Transcorp share price closed at N3.6 today up 4% as management embark on another PR spree. As expected they will visit several mutual and pension funds, TV stations and news print to give an insight into its results and trump up support for its expansion plans. You might think at 30x (using the Group’s EPS) the share price is over valued and can’t rise further? Well, it was over 100x when it hit its high back in November, so don’t bet against it.
Is this enough for me to buy? Certainly not but it’s enough to put in a watch list if you are a huge speculator.