Every investor’s wish is to invest in stocks that help them make money. There is a feeling you get, when you buy stocks at a lowly price, only for it to gain a few weeks or months later. It even gets better if the stocks you bought that have gained in appreciation, also pay juicy dividends.
Nairametrics Stock Select Newsletter (SSN), was specially designed to help recommend stocks that are undervalued and dividend-paying, helping your portfolio grow. Since we launched in May 2020, we have recommended about 19 stocks, some of which have surpassed our target exit price as high as 40%. Here are some of our big winners.
Stanbic IBTC – Is one of our favorite banking stocks on our list of recommendations, for obvious reasons. The stock has gained a whopping 49%, since we recommended it back in May 2020. It was trading for N28.5 per share at the time and we believed it was highly undervalued and worth at least N35 per share. It closed last week at N42.5 per share, meaning if you bought when we recommended and still held it, you would have gained 49% in 152 days, as against our target exit of 22.8%.
Africa Prudential – We first recommended this stock in May 2020, following solid fundamentals and visionary leadership. Nairametrics founder, Mr. Ugo Obi-Chukwu had an opportunity to speak to the current CEO of the company, Mr. Obong Idong, and remarked that “he appears to be a visionary who is driven towards technology and innovation.” He also suggested that Obong had the support of his boss at pivoting the business into a full-fledged technology company.
When we recommended this stock, it was trading for N3.75 per share and an indicative dividend yield of a whopping 17.95%. Whilst we believed the stock was worth at least N7.35 per share, our target exit price was N4.70, providing a return of 25%. The share price closed at N5.73 on Friday, crossing our target exit price. If you bought this stock when we recommended it, you would have gained 52.8% in 159 days or less than 6 months.
GT Bank Plc – The second of the three banks on our list came highly recommended after it got pummeled, as investors feared the impact of the pandemic. It fell to as low as N16 per share in March, and we bought as much as we could. However, we recommended this stock in May when it was trading for N21 per share. Nevertheless, we had high expectations and placed a target exit price of N25 per share for the stock, which translates to an 18.5% gross return. 159 days after, the stock is trading for N30.4 per share, with a gross return of 44.1%. So, if you subscribed when we recommended this stock, you will be up by a whopping 44.1%.
Lafarge Plc – This is one of our more recent stocks, having been recommended late in July 2020. At the time; we thought the stock was ‘on the cusp of a new era’ after it spun off its South African loss-making subsidiary to focus on Nigeria. Since then, its fundamentals have improved, propelling the stock into one of the best performers this year. When we recommended the stock, it was trading for N11.75 per share, with a target exit price of N15 per share or 27.7%. Well, it is 76 days later, and the stock is now trading for N17 per share, effectively beating our target selling price. The stock is now up 44.7%.
United Capital – Investors who bought this stock when we recommended it for N2.63 per share are holding on to one of the hottest stocks on the exchange. When we recommended this stock, our target return was 35% or N3.5 per share. By Friday, 105 days later, the stock hit our target price and now it’s up 35%.
Surely, these are not the only winners we have in the Stock Select Newsletter. Vitafoam has gained 20% since we recommended it 98 days ago. MTN has gained 31% since we also recommended it, while Axa Mansard has gained 23% (in just 63 days). We also have some recommended stocks that we believe are still undervalued, with the potential to gain over 20%.
Disclaimer – Stock Picking is not a science, and you cannot always be sure of making the right calls. It has not been rosy all the way, as a few of the recommended stocks are performing worse than expected. However, because we post our newsletters weekly, we can frequently evaluate our recommendation, assessing if some of our fundamentals are still as solid as they were when we first selected the stock.
Subscribe to Nairametrics Stock Select Newsletter here.
Stanbic IBTC reiterates commitment to the growth of Education in Nigeria
Stanbic IBTC leverages technological innovations to facilitate the provision of quality education in Nigeria.
In commemoration of the 2021 International Day of Education, Stanbic IBTC Holdings PLC, a member of Standard Bank Group, reaffirmed its commitment to providing support and ensuring accessible education to the Nigerian child.
The United Nations (UN) proclaimed 24 January as the International Day of Education, in recognition of the impact of education in bringing sustainable development across the world. The 2021 International Day of Education is themed: “Recover and Revitalise Education for the COVID-19 Generation.”
Speaking on the relevance of the celebration to Stanbic IBTC, Wole Adeniyi, Chief Executive, Stanbic IBTC Bank PLC stated: “Our organisation is keen on positively impacting the education sector to drive national development.”
Adeniyi noted that eucation serves as one of the core pillars of Stanbic IBTC’s CSI initiatives. He emphasised that the end-to-end financial institution would continue to show its unrelenting support towards growth in the Nigerian educational system.
According to him, “we embark on several initiatives aimed at improving education for the Nigerian child, even in the heat of the COVID-19 pandemic when many students struggled to keep up with learning during the nationwide lockdown.”
Stating some of the giant strides taken by Stanbic IBTC to promote effective learning amid COVID-19 disruptions, Adeniyi highlighted that the company had been actively involved in empowering the younger generation with financial literacy knowledge through its “New School Money Initiative”.
Wealth certified professionals in the organisation educated preteens and teenagers on how to develop a savings and investment culture through virtual sessions. They shed more light on subjects to distinguish between wants and needs, assets and liabilities, and the importance of making the right financial decisions. These were effectively communicated using simple, relatable videos and illustrations.
Referencing the International Day of Education theme, Adeniyi further stated that Stanbic IBTC leverages technological innovations to facilitate the provision of quality education in Nigeria.
“Through our CSI initiative, we prioritise the refurbishment of dilapidated schools to create a more conducive environment for our children to learn. We support teachers with better welfare and provide e-libraries, books, computers and other digital tools to aid effective learning for students,” he said.
Stanbic IBTC has also continued to demonstrate its commitment to the development of education in Nigeria through its various educational products to secure the future of young Nigerians. Some of the products include the Children Educational Savings Scheme Account (CHESS), Stanbic IBTC Education Trust (SET) investment scheme and BluEdge, which offer bespoke financial solutions that support Nigerian parents and guardians with various funding options for their children and wards. In the same vein, the leading end-to-end financial institution empowers young Nigerians to access quality education through its JAMB Scholarship Scheme.
“The celebration of the International Day of Education is an opportunity to reiterate our commitment to the growth of education in Nigeria. At Stanbic IBTC, we understand the importance of education in shaping the future of the nation, and we are committed to providing opportunities that guarantee access to quality education for every Nigerian child,” Adeniyi concluded.
Glo-sponsored African Voices brings back Mo Abudu, 2 others in compilation edition
African Voices Changemakers shows on DSTV CNN Channel 401 on Saturday at 9.30 a.m. and 12.00 p.m.
The compilation edition of African Voices Changemakers, the Globacom-sponsored magazine programme of the Cable News Network (CNN), this week brings back to viewers media mogul, Mo Abudu, and two other talents who are positively affecting the African continent.
The two others are 30-year-old Elijah Amoo Addo, a Ghanaian chef and food stylist who has become a social entrepreneur through his creation of “Food for All Africa”, and Karabo Poppy Molestane who in 2019 made the Forbes list as one of Africa’s Foremost Under 30 CEOs.
Abudu hit the limelight with her talk show, Moments with Mo, on which she brought many issues to public attention through interviews with top personalities, the needy and citizens with mental health issues. In 2006, she founded her own TV channel, Ebony Life Television, which is received by viewers in over 49 countries across Africa, the UK and the Caribbean.
Ghana-based Addo uses advocacy and a food-sharing mobile phone app to feed thousands of vulnerable children through food recovery and redistribution. In collaboration with local restaurants, supermarkets, food distribution companies and rural small-hold farmers, Addo’s organization collects leftover food or unwanted food that is close to its ‘use-by’ date and redistributes it to disadvantaged children in orphanages, hospitals and low-income schools.
Born in Vereeniging, South Africa, Molestane is a multi-award-winning Illustrator, graphic designer and street artist who is committed to the preservation of her cultural heritage. She is renowned as a Nike shoe designer and basketball court murals artist who has equally worked with the Wall Street and on Netflix’s Strong Black Lead season.
African Voices Changemakers shows on DSTV CNN Channel 401 on Saturday at 9.30 a.m. and 12.00 p.m. Repeat broadcasts will be aired on Sunday at 4.30 a.m., 7.30 a.m., 12.30 p.m., 7.30 p.m. and on Monday at 12.30 a.m. and 5.30 a.m.
Unilever sets out plans to help build a more equitable and inclusive society
Unilever’s ambition is to improve living standards for low-paid workers worldwide.
Unilever today announced a wide-ranging set of commitments and actions to help build a more equitable and inclusive society by raising living standards across its value chain, creating opportunities through inclusivity, and preparing people for the future of work.
Unilever’s main commitments include:
- Ensuring that everyone who directly provides goods and services to the company earns at least a living wage or income, by 2030
- Spending €2 billion annually with suppliers owned and managed by people from under-represented groups, by 2025
- Pioneering new employment models for our employees, and equipping 10m young people with essential skills to prepare them for job opportunities, by 2030
Alan Jope, Unilever CEO, explained, “The two biggest threats that the world currently faces are climate change and social inequality. The past year has undoubtedly widened the social divide, and decisive and collective action is needed to build a society that helps to improve livelihoods, embraces diversity, nurtures talent, and offers opportunities for everyone.
“We believe the actions we are committing to will make Unilever a better, stronger business; ready for the huge societal changes we are experiencing today – changes that will only accelerate. Without a healthy society, there cannot be a healthy business.”
Unilever’s ambition is to improve living standards for low-paid workers worldwide. The company will therefore ensure that everyone who directly provides goods and services to them earns at least a living wage or income, by 2030. The company already pays its employees a living wage, and they want to secure the same for more people beyond its workforce, specifically focusing on the most vulnerable workers in manufacturing and agriculture.
In addition to improving living standards through economic inclusion, Unilever is also critical about creating more opportunities for people from under-represented groups – both within and outside of the organisation. Diversity in the workplace directly results in improved financial performance through its capacity to foster innovation, creativity, and empathy.
Speaking further Jope said, “As we help to build a more equitable and inclusive society, we recognise that changes to the world of work will affect the employment prospects of many people. Many current ways of working – roles, places, hours, skills – are rapidly evolving. We have a responsibility to generate and sustain employability, by preparing our employees and other people beyond our organisation for the societal and technological changes that are taking place.”
Beyond its immediate organisation, Unilever plans to help equip 10m young people with essential skills to prepare them for job opportunities, by 2030. “By investing in skills-building and providing work experience opportunities for young people, we will drive growth, and accelerate digital capabilities, building expertise and increasing productivity.” Jope said.
Unilever is one of the world’s leading suppliers of Beauty & Personal Care, Home Care, and Foods & Refreshment products with sales in over 190 countries and reaching 2.5 billion consumers a day. It has 150,000 employees and generated sales of €52 billion in 2019. Over half of the company’s footprint is in developing and emerging markets. Unilever has around 400 brands found in homes all over the world, including Dove, Knorr, Dirt Is Good, Rexona, Hellmann’s, Lipton, Wall’s, Lux, Magnum, Axe, Sunsilk and Surf.
Unilever’s Sustainable Living Plan (USLP) underpins the company’s strategy and commits to:
- Helping more than a billion people take action to improve their health and well-being by 2020.
- Halving the environmental impact of our products by 2030.
- Enhancing the livelihoods of millions of people by 2020.
The USLP creates value by driving growth and trust, eliminating costs and reducing risks. The company’s sustainable living brands delivered 78% of total growth and 75% of turnover in 2019.
Since 2010 we have been taking action through the Unilever Sustainable Living Plan to help more than a billion people improve their health and well-being, halve our environmental footprint and enhance the livelihoods of millions of people as we grow our business. We have made significant progress and continue to expand our ambition – in 2019 committing to ensure 100% of our plastic packaging is fully reusable, recyclable or compostable by 2025.
While there is still more to do, we are proud to have been recognised in 2019 as sector leader in the Dow Jones Sustainability Index and in 2020 – for the tenth-consecutive year – as the top-ranked company in the GlobeScan/SustainAbility Sustainability Leaders survey.
For more information about Unilever and its brands, please visit www.unilever.com.
For more information on the USLP: www.unilever.com/sustainable-living/