With the recent volatility in markets, the oldest of dog has to learn new tricks. The hunter has learnt how to aim higher, because the bird has also learnt to fly higher. For a penny stock investor like myself, this is hunting season. Getting a low price is no longer the issue, but how low will it go ?
Trans Nationwide Express (TRANEX) had been on my radar for a while. Till it crossed the one naira mark, and kept going higher. What goes up however, must come down. Recent declines have made it look attractive again. I first noticed the company, through its numerous dispatch riders which zoom across Lagos on a daily basis. That got my mind buzzing and I did further research on the stock. The company has been in existence for over thirty years and is involved in courier, freight, haulage and related services. While it shows the characteristics of any fairly old company in Nigeria, namely average performance, recent results have been fair.
The sector it’s operating in has very high barriers of entry and dominant players are few. It also has a huge potential for growth. Moreso, with the increase in e-commerce which is part of the company’s services. The poor infrastructure in the country, is a key challenge to operators in this sector.
To the Jamb question of the day: Would Tranex shares be worth buying ? Without a doubt, yes. Do note that buying stocks in today’s clime is like buying a bale of okrika clothing. Things are not often as they seem. Old age has its advantages and disadvantages. In human beings and same also applies to companies.