According to data from the Nigerian Stock Exchange, as at August 16th, 2019, the market capitalization of the entire 170 listed stocks was valued at about N13.1 trillion. Out of these 170 stocks, the big six, made up of Dangote Cement, MTN Nigeria, Airtel, Nestle, GTB and Zenith Bank, have a combined market capitalization of about N8.95 trillion — about 68% of the market capitalization of the exchange. Whenever these stocks sneeze the stock market catches a cold.
Conversely, there are also stocks that are at the lowest tier with market capitalizations that fall below what you will expect of a company listed in the upper tier of the Stock Exchange. One company holds the unenviable title of being the least capitalized stock on the Nigerian Stock Exchange. That stock is none other than Thomas Wyatt Nigeria Plc.
Market Cap: According to the latest stock exchange data, Thomas Wyatt has a market capitalization of a meagre N92.4 million or $257,000 only. A few months ago, it was worth about half of this amount and valued at just about N46 million.
- The stock has a year low of N0.23 and is ironically one of the best-performing stocks, after gaining a whopping 82.6%, since it hit bottom in March.
- Its current share price of N0.42 is currently its year high and has remained that way since July 2019.
- Its highest share price over the last 5 years was N0.79, last achieved in December 2014. It has not touched this level since then.
What does Thomas Wyatt do? According to information on its website, the company is majorly into paper manufacturing, the printing of books and other stationery items, and manufacturing printers. Some of its products include exercise books, ruled papers, duplicated books, spiral and quarter-bound books, photocopying and typing papers and full complements of envelopes. The company also prints calendars, diaries, toilet rolls, and facial tissues. You may have seen exercise books with the brand name “Apex Mill”, this belongs to them.
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Who are their customers?: The company claims that its customers include the likes of “Unilever Nigeria Plc, Nigerian Bottling Company, MTN Communications, Flour Mills of Nigeria Plc, Mr. Biggs, College of Medicine, University of Lagos, Obafemi Awolowo University, Corona School Trust Council, Queen College, etc.” Whether these companies still patronize them is another issue.
Cursory Financial Analysis: According to the company’s 2019 full-year results ended March 2019, Thomas Wyatt reported revenues of N58.1 million, a drop from N86.3 million reported a year earlier. Losses also ballooned to N56.7 million, compared to N98.5 million losses a year earlier. The company is technically insolvent, with about N343 million in negative equity.
How is it still afloat?: Thomas Wyatt remains afloat because of Leadway Assurance, and the Bank of Industry. It also is in business because some of its related parties often give it a lifeline in credit purchases.
It owes Leadway Assurance about N265 million, and the Bank of Industry N185 million (Finance Lease). It appears that it has not paid down the principal and only paid about N18 million in interest and N500k in lease rentals during the year.
Who owns Thomas Wyatt? The company’s majority shareholders are Moorehouse Management Ltd with 22.3% of the equity of the company. It is closely followed by Nova Finance and Security with 10.6%, and Ojukwu Transport with 5%. Nigerians own the rest of the company.
Moorehouse Management invested in the company in 2005 as a core investor, but it appears that the benefits of that deal have not materialized as expected.
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Buying Opportunity? Well, on paper the company is worth N92.4 million; however, it could be worth more than that at true cost. Anyone who buys this company will still need to pay for what you can call a control premium. The company also owns property plants and equipment with a book value of N391 million. It could be worth much more based on market value.
Who could be interested in buying? Thomas Wyatt is one of the oldest companies listed on the Nigerian Stock Exchange, and it was incorporated in 1948. Acquiring the company shouldn’t be difficult if the price is right and the owners are willing to sell. However, simple things can be quite onerous in Nigeria.
Those interested could be:
- Existing shareholders who want to take it private.
- Any private company or private equity firm looking for a reverse listing. This basically means listing on the stock exchange by acquiring an already listed firm.
- Any group of sharp investment firms looking for a challenge — a company they can turn around.
Need detailed information? Contact us via [email protected]
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Nigerian bourse gains N37.26 billion, triggered by BUACEMENT, ZENITH
Nigerian bourse finished on a bullish note triggered by AIRTELAFRI, BUACEMENT and ZENITH BANK
The Nigerian Stock Exchange All Share Index finished today by 0.30% to 24,097.48 points, with market capitalization also adding N37.26 billion to close at N12.57 trillion.
However, trading activity was lower as evidenced by a 18.01% decline in volume of equities traded to 155.52 million units, while the value of trades also fell slightly by 6.60% to N2.60 billion. GUARANTY was the most traded by volume and value at 19.72 million units and N413.8 million.
Market sentiment, as measured by market breadth, was negative as 18 tickers declined, relative to 17 gainers. REDSTAREX and PZ were the top gainers of the day with 9.76% and 5.00% price appreciation, while OKOMUOIL and UNILEVER topped the losers with 9.95% and 9.78% depreciation in share value.
The sectoral performance was mixed as two of the five indices closed higher, while the other three closed the day in the red. The Banking Index (+0.92%) led the advancers, followed distantly by the industrial Index (+0.09%).
Conversely, the Insurance Index fell by -1.92%, while the Consumer and Oil & Gas Index fell by -0.52% and -0.02% respectively.
FCMB (+4.09%), UBA (+2.48%) and ZENITHBANK (+1.87%) lift the lenders’ Index, while BUACEMENT (+2.51%) raised the industrial Index. MANSARD (-9.66%) and CUSTODIAN (-9.09%) drove the Insurance Index lower, UNILEVER (-9.78%) and GLAXOSMITH (-8.08%) accounted for depreciation in the Consumer Goods Index and MRS (-9.78%) depressed the Energy Index. Similarly, MTNN closed the day lower by -0.86%.
REDSTAREX up9.76% to close N3.26,AIRTELAFRI up 3.66% to close at N328.7,BUACEMENT up 2.51% to close at N40.9,ZENITHBANK up 1.87% to close N16.35,PZ up 5.00% to close N4.2
OKOMUOIL down 9.95% to close at N69.7,UNILEVER down 9.78% to close at N12.45,MRS down 9.78% to close at N12.45,MTNN down 0.86% to close at N115,DANGCEM down 0.79% to close at N126
Nigerian bourse finished on a bullish note triggered by AIRTELAFRI, BUACEMENT. Nairametrics envisages market volatility will increase in the coming days as earning results are scheduled to come out.
Investors lose N162 billion amidst buying pressure from ZENITH, GTBANK
Nigerian bourse continued its bearish trend, taking no rest from previous week losses as the ASI dipped further by 1.27% to 24,026.05 index points on Monday.
Market capitalization shed N161.59 billion to settle at N12.533 trillion. Accordingly, the Month-to-Date and Year-to-Date losses increased to -1.85% and -10.52%, respectively.
Activity levels closed strong, compared to the previous trading session, as total volume and value increased by 31.45% and 83.21% to 189.69million units and N2.78billion respectively. GUARANTY was the most traded by volume and value at 60.46million units and N1.27billion.
Market sentiment, as measured by market breadth, was negative as 17 tickers declined, relative to 14 gainers. BETAGALSS and JBERGER were the top losers of the day with 9.95% and 9.81% price decline, while NAHCO and ZENITHBANK topped the gainers with 10.00% and 5.25% appreciation in share value.
Performance across sectors mirrored the broad index as three out of the five major sub-indexes we cover posted losses. Price appreciation in ZENITH and GUARANTY spurred a +1.51% gain in the Banking Index, trailed by the Insurance Index, which appreciated by 1.05%, as CORNERSTONE & AIICO INSURANCE gained.
The Consumer goods index led the laggards with (-3.18%), on Nestle -6.51% decline. The Industrial Index -2.35% followed, due to losses in BUACEMENT (-5.00%), while the Oil and Gas index declined distantly by- 0.04%, impelled by losses in OANDO.
NAHCO up 10.00% to close at N2.2, ZENITHBANK up 5.25% to close at N16.05, FLOURMILL up 5.11% to close at N18.5, UBN up 1.87% to close at N5.45, GUARANTY up 0.96% to close at N21.
BETAGLAS down 9.95% to close at N61.55, JBERGER down 9.81% to close at N16.55 NESTLE down 6.51% to close at N1175, BUACEMENT down 5.00% to close at N39.9, CILEASING down 8.43% to close at N3.8,
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Blue-chip heavyweights, BUACEMENT, NESTLE dragged the Nigerian bourse lower on Monday’s trading session, as market liquidity improved slightly. Nairametrics recommends cautious buying as economic uncertainty strengthens amidst Q2 earning result season.
Royal Rumble at first trading week of Q3 2020, ASI down 1.99% WoW
Trading in the top three equities accounted for 275.099 million shares worth N2.818 billion in 3,497 deals.
The Nigerian stock market ended the week on a bearish note, as the All Share Index (ASI) and Market Capitalization both depreciated by 1.99% to close the week at 24,336.12 and N12.695 trillion respectively.
A total turnover of 961.833 million shares worth N9.181 billion in 20,058 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 739.375 million shares valued at N8.563 billion that exchanged hands last week in 17,248 deals.
The Financial Services industry (measured by volume) led the activity chart, with 618.714 million shares valued at N4.338 billion traded in 9,669 deals, thus contributing 64.33% and 47.25% to the total equity turnover volume and value respectively.
The Consumer Goods industry followed with 91.119 million shares worth N2.227 billion in 3,703 deals. In the third place was the Conglomerates industry, with a turnover of 60.640 million shares worth N62.779 million in 556 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Bank Plc, and United Bank for Africa Plc (measured by volume) accounted for 275.099 million shares worth N2.818 billion in 3,497 deals, contributing 28.60% and 30.69% to the total equity turnover volume and value respectively.
13 equities appreciated in price during the week, lower than 18 equities in the previous week. 59 equities depreciated in price, higher than 43 equities in the previous week, while 91 equities remained unchanged, lower than 102 equities recorded in the previous week.
OKOMU OIL PALM PLC. up 20.94% to close at N77.40
ROYAL EXCHANGE PLC. up 13.04% to close at N0.26
PRESTIGE ASSURANCE PLC up 10.64% to close at N0.52
ACADEMY PRESS PLC. Up 0.30 0.02 to close at 6.67% N0.32
VITAFOAM NIG PLC. up 5.30 0.29 to close at 5.47% N5.59
REGENCY ASSURANCE PLC up 5.00% to close at N0.21
NESTLE NIGERIA PLC. up 4.73% to close at N1256.80
WAPIC INSURANCE PLC up 3.13% to close at N0.33
NEM INSURANCE PLC up 2.50% to close at N2.05
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NIGERIAN AVIATION HANDLING COMPANY Plc. down 24.24% to close at N2.00
LEARN AFRICA Plc. down 21.48% to close at 1.06
UNILEVER NIGERIA Plc. down 18.82% to close at N13.80
GLAXO SMITHKLINE CONSUMER NIG. PLC. down to close at N4.95
UNION BANK NIG. Plc. down 15.08% 6.30 -0.95 -to close at N5.35
NASCON ALLIED INDUSTRIES PLC down 13.79% to close at N10.00
AIICO INSURANCE PLC. down 13.13% to close at N0.86
JAPAUL OIL & MARITIME SERVICES PLC down 12.00% to close at N0.22
STERLING BANK PLC. down 10.85% to close at N1.15
ARDOVA PLC down 10.73% to close at N11.65