Oando Plc – This stock enjoyed a massive surge after it announced it was now closer to finalizing its C.O.P deal. The share price hit N33 and then started to fizzle out, closing the week at about N27. I had predicted the stocks surge will take it to N40 but that off course depends on other factors beyond just the COP deal. For example, it is yet to release its 2013 full year results just as we have crossed mid way into the year. Perhaps the results will be out this week and its outcome will once again determine the fate of this stock. Opinion Hold
Caverton – This stock has seen turbulent times since its début. After crashing to as low as N4.19 it began a gradual surge that took it back to 7.26 before closing he week at N6.56. The price trend in my opinion is not influenced by an fundamentals but rather market sentiments, profit taking and demand and supply. He price could go anywhere really and it’s not one id want to take a gamble on. On a fundamental basis, my gut instincts put the true value of the share price at anywhere below N6.
ABC Transport – They announced dividend payment of 6kobo per share along with a 1 for 10 bonus. The market liked this and the share price rose to 94kobo a 10% gain for the week. The only problem I see is that the dividend will only be paid in September 2014 a such I don’t see this surge being sustained beyond this week. Will it rise to N1? Possible but I don’t see it crossing its one year high of N1.30. I don’t believe the 1 for 10 bonus is strong enough to take it that high. Opinion: Won’t get higher than N1.10
Red Star Express – The company announced a 35kobo dividend helping the stock up 4% to close at N5.17. Red Star express I believe has good fundamentals and the dividend proposed provides a good upside for investors. We had the stock in our wish list some months back and included it in our portfolio. I feel this stock is on the rise.
Japaul – This was the best stock last week having closed the week 17% higher at 66kobo. This was another bullish run that wasn’t backed by any fundamentals. The company made no major announcement and neither did it release any results. What I heard was that the surge in oil sector stocks was propelling it higher. It did close the week lower at 4% so I expect it to continue to drop profit taking takes its toll. Opinion Share rice might trend lower.