Stocks on our Buy/Sell/Hold list are picked from the gainers and losers from the previous week. Here are our stock picks for this week’s trading session.
* There was no trading on the Nigerian Stock Exchange (NSE) on Monday due to the Eid El Fitr holiday. Year to date figures are thus, for Thursday, June 14, 2018.
Learn Africa Plc: SELL
Learn Africa is into the publication of books across all levels. The company was established in 1961 as a subsidiary of Longman Group UK Limited, now Pearson Education. Longman became a subsidiary of Pearson Education following an increase of stake to 51%.
In 2011, both companies agreed to become separate corporate entities. Learn Africa was listed on the Nigerian Stock Exchange (NSE) in 1996.
Latest Results: Results for the 2017 financial year show that revenue increased from N2 billion in 2016 to N2.4 billion in 2017. Profit before tax increased from N134 million in 2016 to N296 million in 2017. Profit after tax increased from N237 million in 2016 to N266 million in 2017.
Pricing
Current Price: N1.58
Price Earnings Ratio: 4.51x
Price to Book Ratio: 0.38
YTD: 79.55%
One Year return: 90.36%
Latest information: The company recently released its financial statements for the 2017 financial year.
External View: None
Our View: Learn Africa is a SELL in Nairametrics’ opinion. The stock is currently trading at a high of N1.58. Learn Africa has done 79% year to date, vastly outperforming the NSE even at its peak so far in January.
While there could be further upside due to news of a dividend payment, it will not be sustained.
Newrest ASL Nigeria Plc: HOLD
Newrest ASL Nigeria (formerly Airline Services Limited) was incorporated as a private limited liability company on December 6, 1996. The company became a public limited liability company on February 26, 2007, and was listed on the Nigerian Stock Exchange on July 25, 2007.
The company’s primary activities are the provision of catering services to international airlines operating in the country.
Latest Results: None.
Pricing
Current Price: N4.71
Price Earnings Ratio: 2.51X
Price to Book ratio: 0.88
YTD: -24.37%
One Year return: 3.54%
Latest information: The company will be holding its Annual General Meeting (AGM) on June 26, 2018. Dividend payment for the 2017 financial year will take place the following year.
External View: Results for the first quarter ended March, 2018, show revenue dropped from N1.3 billion in 2017 to N1.1 billion in 2018. Profit before tax, however, jumped from N131 million in 2017 to N229 million in 2018.
Our View: Newrest ASL is a HOLD in Nairametrics’ view. The stock is trading at 24% below its year high of N5.95. This leaves room for further downside in the event of the market going bearish.
Berger Paints Plc: HOLD
Berger Paints Plc was incorporated in Nigeria as a private limited liability company in 1959 and was converted to a public liability company in 1973. The company is primarily into the manufacture, sales, and distribution of paints and allied products in the country.
Latest results: Results for the first quarter ended March, 2018, show that revenue grew marginally from N788 million in 2017 to N834 million in 2018. Profit before tax, however, dropped from N129 million in 2017 to N103 million in 2018. Profit after tax also fell from N88 million in 2017 to N70 million in 2018.
Pricing
Current Price: N8.55
Price to Earnings Ratio: 11.10x
Price to Book Ratio: 0.95
YTD: 8.24%
One Year Return: 46.27%
Latest information: A few weeks ago, the company announced the appointment of Abi Ayida as its new Chairman. He replaces Oladimeji Alo who stepped down.
External View: None
Our View: Berger Paints is a HOLD in Nairametrics’ opinion. The stock is currently trading at 17%, from its year high of N10.35.
This is not a buy sell or hold recommendation. Remember to consult a competent financial analyst or stockbroker if you need help with your investment decisions.
