Investdata Q2 master class stocks beat inflation, offers 47.97% average returns
Ahead of Saturday’s third master class in the series this year, organized to give equity investors and traders on the Nigerian Exchange a head-start, Investdata Consulting Limited, the organizers, on Wednesday said the stocks recommended to participants on July 4, 2021, again outperformed the country’s burgeoning 17.01% inflation rate.
A statement by Investdata showed that the five stocks reviewed ahead of the Q3 trading period so far returned 47.97% on the average as of the trading session of Tuesday, September 28, 2021, a space of fewer than three months, but far better than the 2.5% coupon on the 91-day Treasury Bill.
Leading the pack is UPDC (formerly UACN Property Development Company) Plc which returned 127.71% within the period, opening at N0.83, while closing the period at N1.89 per share. Oando Plc followed with 64.06% return on investment from N3.20 to N5.25 each; United Capital, opened at N6.13, closing the period at N8.70, returning 41.92% within the period.
Access Bank, however, returned 8.59%, which was still better than the TB yields, but underperformed inflation; while returns on Zenith Bank was a negative 2.43% in the period under review.
Also, according to Investdata Consulting, stocks showcased during the April 2021 master class have also returned 36.26% on average to those who invested immediately as of September 28, 2021, offering a very positive real rate of return compared to the inflation rate. The return was also way better than the 3.5% coupon on the 182-day TBs, the 7.2% for full-year, or the negative 3.51% by the Nigerian Exchange All-Share index (NGXASI) year-to-date.
The best returns from the April master class came from Honeywell Flour Mills Plc, after its share price jumped from N1.18 per share to N3.83 on September 28, representing a 224.58% in less than 182 days on investment (the tenor of medium-dated Treasury Bills) for those who took advantage of the “buy” signal given on that occasion. It was followed by Vitafoam with 110.84% after its share price leaped from N8.30 to N17.50; United Capital returned 58.18%, as its share price climbed up from N5.50 to N8.70 each; Eterna achieved 28.44% returns; and Livestock Feeds, 20.32%.
Other stocks were Access Bank, 12.35%; May & Baker, 6.43%; Zenith Bank, 6.39%; Lafarge Africa, 5.12%; UACN, 3.59%; and Flour Mills, 3.1%; among others.
Neimeth Pharmaceuticals also underperformed after its share price yielded 10.26% negative returns on investment, as its share price closed at N1.75 each, from the N1.95 it opened.
The statement quoted Ambrose Omordion, Chief Research Officer, Investdata Consulting Limited, as saying “this last master class for the year 2021 is another opportunity for wealth creation by participants as usual on Saturday, as Investdata continues to empower Nigerian retail investors with the needed knowledge to boost their trading and investing experience.”