If you are value investor or fast money trader, then here is one trade to keep an eye on.
UBA one of Nigeria’s tier – 0ne banks is a broken stock ( but not a broken company )and seems to be heading to test the N2 per share mark before, it can mount any meaningful rally. (See chart)
As a matter of fact the last time UBA touched the N2 mark in early 2012, it bounced off it to finish up 79 percent for that year.
UBA is currently below its 200 day moving average (blue line) which is also trending lower.
Traders may want to accumulate positions between N1.75 and N2 with a tight stop loss.
UBA has yet to release its Half year 2015 results and that may be the catalyst to push the stock lower to these levels, especially if they disappoint.
UBA closed at N3.01 per share today and is down 57 percent in the past year.
The writer of this article does not own any UBA stock in his portfolio. He however, intends to buy after the release of half yr 2015 results or if the stock hits his target price.