Insurance companies don’t make for great conversation fodder at parties, but few other businesses can match their potential for creating wealth. The Nigerian Stock Exchange is home to one particularly interesting opportunity in the space that now trades at a P/E ratio of 12.1 and a juicy 11.3% dividend yield.
Airlines generally make for lousy investments.
But the support companies that keep the planes flying and their customers comfortable are a very different story.
Here’s an introduction to one that looks set to deliver promising returns to Nigeria investors.
When Africa’s richest man, Aliko Dangote, announced a 40% price cut on bags of Dangote Cement last week, Nigerian consumers rejoiced.
The stock market’s reaction, on the other hand, was decidedly less enthusiastic. Shares of the company have plunged nearly 19% since the news broke.
So, will the stock weigh down a portfolio’s performance going forward or does it have a solid foundation for market-beating gains? Let’s take a closer look.
This week GSK Nigeria (GLAXOSMI) announced that its profits through the first nine months of 2014 dropped 23% compared to the same time period last year.
The news came as a bitter pill to investors. The stock has fallen nearly 16% over the past thirty days and now trades at its lowest price in 16 months.
Are the shares bad medicine? Just what the doctor ordered? Or something in between?
Let’s have a closer look at the numbers and see what they reveal.
Stanbic IBTC is Nigeria’s best-performing bank stock. Its share price has climbed 40.5% this year and 55.4% over the past twelve months. Is it nearing the end of its run? Or is the market still offering investors a discount to the bank’s real worth?
Here, Godfrey Mwanza, CFA shows us how he values the company.