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.