Every investor’s wish is to invest in stocks that help them make money. There is a feeling you get, when you buy stocks on 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 pays 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, with obvious reasons. The stock has gained a whopping 42%, 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 N40.5 per share, meaning if you bought when we recommended and still held it, you would have gained 42% 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 hit N4.75 on Friday, crossing our target exit price. If you bought this stock when we recommended it, you would have gained 26% in 152 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 18.5% gross return. 152 days after, the stock is trading for N29 per share, with a gross return of 37.4%. So, if you subscribed when we recommended this stock, you will be up by a whopping 37.4%.
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 69 days later, and the stock is now trading for N15.15 per share, effectively beating our target selling price.
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 21% since we also recommended it, while United Capital has gained 21%. We also have some recommended stocks that we believe are still undervalued, with a 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.