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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Stay-at-Home Stocks: Microsoft, Apple, Facebook surge after upbeat results from Netflix
The Nasdaq index had earlier hit a record high on hopes of impressive earnings later this week.
Nasdaq recorded impressive buying pressures with the so-called “stay-at-home” winners, including Facebook, Apple, and Microsoft, which rose after upbeat results from Netflix Inc recorded last week.
Netflix’s share price had earlier recorded impressive gains after it beat market expectation, powering the video streaming stock to close on the account that it added more customers than expected and revealed it no longer needed debt to build its entertainment empire.
- The positive upbeat guidance on free cash prompted bullish remarks from Wall Street analysts, though some questioned how much of the subscriber growth was pulled forward.
- The Nasdaq index had earlier hit a record high on hopes of impressive earnings later this week from the likes of Apple, Facebook, and Google, but the Dow Jones Industrial Average index, dominated by industrials and airlines, struggled to keep such bullish momentum.
That said, the U.S Equity market generally pulled back from its record highs in recent days, waiting to see if COVID-19 vaccines could reduce COVID-19 infection rates globally.
The Dow Jones Industrial Average fell by 0.12%, to settle at 30,960 pints; however, the S&P 500 gained 0.36%, to close at 3,855.36 points and the Nasdaq Composite added 0.69%, to settle at 13,635.99 points.
In a note, Stephen Innes, Chief Global Market Strategist at Axi, spoke on the bullish rally sighted in U.S based tech brands.
“One argument for the outperformance could be that tech enjoys low rates, so the fixed-income performance helps amid lockdowns. After all, in a foreshadowing effect, Netflix rose 16% last week after subscriber numbers soared by a record 37mn in 2020.
“Unsurprisingly, it seems lockdowns and TV go hand in hand and by extension, so does gaming and the use of cutting-edge software and hardware components.
“And with the bulk of Tech market cap (75%) reporting during the next two weeks, it’s clear investors like the pack’s heavyweight leaders instead of buy-the-laggards, leading to these eye-catching moves. And I’m not sure that logic doesn’t make sense.”
What to expect: But at some point, the stock bears might come back to haunt the stock market. There’s nothing in the investment world that’s quite like hitting a patch of black COVID-19 economic ice when traditional investing wisdom suggests the best offence is a good defence by taking your foot off the gas pedal as the most straightforward function of damage control.
United Capital Plc CEO purchases additional 1.3 million shares worth N7.19 million
United Capital Plc CEO has purchased an additional 1.3 million units of the firm’s shares worth N7.19 million.
The CEO of United Capital Plc, Mr. Peter Ashade has purchased an additional 1.3 million units of the firm’s shares worth N7.19 million, maintaining a 3-monthly buying streak.
This is according to a recent disclosure signed by the firm’s secretary, Leo Okafor, and sent to the Nigerian Stock Exchange market today, as seen by Nairametrics.
The recent deal which took place on the 22nd of January, 2021 saw the United Capital boss purchase an additional 1,330,613 units of the firm’s share at N5.40 per share, totaling N7, 185,310.2.
Nairametrics learned that the recent deal raises the total number of shares purchased by the CEO in the last three months by an additional 6,000,000 units.
What you should know
- Mr. Ashade earlier purchased additional 1.5million units of United Capital Plc shares, worth N8.03 million, as reported by Nairametrics.
- Nairametrics also reported the purchase of one million units of the United Capital Plc shares by its CEO.
- As of the time of reporting this, United Capital Plc share price currently trades at N5.40, down by 0.92%.
- The firm has a current market capitalization of N32.4 billion and 6million outstanding shares.
- The recent deal might be an indicator of strong investors’ confidence in the potentials of the firm.
Airtel, WAPCO, MRS rally up, investors gain N46 billion
The All Share Index gained 0.21% to close at 41,088.96 index points. Year to date return and market capitalization settled at 2.03%, and N21.49 trillion respectively
Nigerian Stocks ended the first trading session on a bullish note.
The All Share Index gained 0.21% to close at 41,088.96 index points. Year-to-date return and market capitalization settled at 2.03%, and N21.49 trillion respectively. Investors gain N45.49 billion.
- A total volume of 333 million units of shares, valued at N2.64billion exchanged hands in 5,640 deals. TRANSCORP (-5.26%) finished the most traded shares by volume at 48.9million, while ZENITHBANK (0.00%) topped by value at N418 million.
- Market breadth was however inverse of the broad index with 30 losers against 19 gainers. MRS (+9.82%) led the gainer’s chart today, while CILEASING (-10.00%) was the top loser.
- Performance across sectors was mixed; like Oil & Gas (-0.80%), Consumer Goods (-0.72%) and Insurance (-0.58%) closed in red, while the Industrial and Banking indexes improved by +0.54 and 0.49% respectively.
- MRS up 9.82% to close at N12.3
- JBERGER up 3.17% to close at N19.5
- WAPCO up 1.92% to close at N26.5
- DANGCEM up 0.85% to close at N236
- AIRTELAFRI up 0.38% to close at N855
- CILEASING down 10.00% to close at N5.13
- ARDOVA down 9.78% to close at N18.45
- INTBREW down 6.53% to close at N6.16
- NASCON down 5.81% to close at N16.2
- UNILEVER down 2.22% to close at N13.2
Nigerian Bourse recorded an impressive winning streak this week as some NSE30 stocks including, AIRTELAFRI, DANGCEM, WAPCO triggered the upward run on Monday’s trading session.
- The Nigerian Stock market advance to close in positive territory as buying interest was seen on stocks across the board.
- Nairametrics however, envisages cautious buying, amid improved market conditions in Nigeria’s financial market.