Some stockbrokers have said the current share price of  Caverton Offshore Support Group Plc (Caverton)  provides a good entry point for investors as the market awaits the interim financial performance of the company.

Caverton, a leading provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria, made history  last month as the first offshore support company in the newly created Support and Logistics sub-sector.

The company had its 3.35 billion shares listed on the NSE at N9.50. However, the equity declined to N5.14 by the close of trading on Monday. Stock dealers said the decline in the share price is partly due to lack of understanding of the company’s operations.

The Managing Director of APT  Securities and Funds Limited, Garba Kasimu Kurfi said  most operators and investors are yet to really understand the operations of Caverton and its earnings potential.

“I think many people do not know much about the company. However, I expect the shares to bounce back as soon as the company declares its first quarter results and especially if they meet their projections  or outperform the projections,” he said.

Another stockbroker, Mr. Ayo Oguntayo, said given the sector the company is operating in and future prospects, the current price is a very good entry point for discerning investors.

Source: Thisday

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.