Looking Ahead: Five Value Stocks You Should Be Happy to Have in Your Portfolio
By Acceler8now.com Stock Investing Team, November 5, 2007
If you are looking for opportunities for short-term speculative investment and trading of stocks, this write-up may not be for you. It is more about stocks you can buy into for medium- to long-term value. It's about stocks that you can buy today and give some time to generate the returns that should make your investment worth your while. You could call them value stocks or otherwise refer to them as base stocks. While future market conditions cannot be predicted with accuracy, you can pick a list of stocks today that are good long-term value. Five of such stock, picked from three key sectors, are examined here in no particular order, while more will be discussed in subsequent write-ups.
GTBank
Guaranty Trust Bank is one of our picks for today. Reasons: solid track record, strong corporate governance, proven management, good market standing and consistency of performance. Dividend policy is also investor-friendly and stable. First quarter 2007 results show 66% growth in profit before tax.
GTBank's share price has dipped, from year-high of N37.96 to current level below N30.00. Future prospects look good and buying at current price level is considered right.
Intercontinental Bank
Strong market presence and core corporate strength. Consistent track record of performance backed with solid capital base. Intercontinental has proved a fast-growing financial institution for which global recognition has not been short in coming. Good management discipline and a focused approach has earned it a place among the top banks in the system. At current price level, good potential for capital growth is exists.
First Bank
Sound fundamentals and proven track record and a solid financial base. Still has a lot market cloud that has continued to yield strong earnings growth and profitability. Strong on dividend payout and bonus issues. Expected to utilise newly raised fund to expand long-term capacity and sustain re-engineering. First Bank still has a lot of internal capacity to sustain a top level performance. A good value stock that can hold out over time and has enough capacity for capital growth. Price may waver for some time, but ultimately a good buy with strong future prospects.
Nigerian Breweries
Though this stock had remained at its bottom for several months, it was clear the market wasn't pricing it down any further. Obviously, this remains a major player and leading operator in its industry. It's business potentials are still strong backed with a portfolio of top brand products. Tested company with performance history.
OANDO
With strategic diversification and capacity building, there are potentials of future growth and growing market share for OANDO. Diversification into gas and petroleum refining as well as upstream operations, hold a good promise for future performance. While some of the projects are in process and yet to go full stream, their potential implications for earnings will still healthy. Management shows strategic focus and a growth orientation. Given current price level of below N80, it can fit into a portfolio that is futuristic.
So, if you are considering stocks for strategic investment portfolio, these are some of the value stocks you may want to take some look at. The will add strength to your portfolio and still have the potentials to yield good returns, over time.
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