Red Star Express hit a year high Tuesday after the share price gained 4.7% to close at N5 per share. The company has now seen its share price gain 27% since January (YTD) 2015.
Why the rise?
The company’s last results was its 2015 9 Months results, released in December 2014. The company had reported a profit after tax of N309 million which was flat year on year in terms of growth. The company’s full year result is therefore over due having been expected since April 2015.
We believe this is probably the reason for the movement in share price as many anticipate dividend announcement once the results are released. Last year they paid dividend of about 35 kobo per share and took the share price to as high as N5.35. Red Star as at December had N484million in cash, very little debt and a positive working capital of over N1 billion.
Disclosure – Nairametrics and the author of this article owns shares in Red Star Plc and does not plan to buy shares in Red Star Plc in the next 48 hours. The author of this article wrote it themselves, and did not write this article on behalf of Red Star Plc , its associates or representatives. The article is purely their opinion.
I anticipated this would happen – i tried to buy the stock without success when it was below 4 naira. It just wasn’t available. All of a sudden it flooded the floor and been skyrocketing since.
I have small units here and will just wait till it drops again after dividends to accumulate.
Thanks!