Pre-Order Before 16th September 2021

Explosive Stocks Strategy Guide

You’ll discover:

1 Unpopular Penny Stock That Qualifies as an Explosive Stock

I ran a scan of Nigerian stocks using the strategy I shared in my new book – Explosive Stock Strategy – but to my surprise, I discovered a stock I wouldn’t have thought of as a good pick.

This particular company will definitely not be on my list of random picks if I want to pour idle cash into the equities market. Well, that’s the advantage of having a proper stock trading strategy; it takes all guesswork off your head and put you on a path to achieving repeated success, at least 70 -80% even in a bearish market.

Lest I forget, the explosive stock strategy is one that focuses on medium to long-term stocks that have outperformed the NSE All-Share Index with a high probability that the momentum isn’t slowing down anytime soon. And such share price appreciation isn’t dependent on annual financial results or else, you’d be missing out, so I watch out for key data that are driving positive sentiments.

Let’s look at the chart of this penny stock:

From technical standards, the stock seems to be trading within a range in the last 8 years which means we have a near-term resistance that’s 40% above the current market price.

The recent increase in the price of essential items and renewed demand for disposable drinks since the lockdown was lifted seems to be a major driver of the company’s revenue.

Fundamentals

In its Q1 earnings result, revenue increased by 65% to N150 million while loss before and after-tax narrowed significantly by 92%, from N87 million to N6.4 million. The Q2 result also reflects a continued trend with revenue growth prints at a whopping 239%.

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What’s even more interesting is that they achieved a 98% reduction of loss incurred in the previous comparable quarter. In Q2 2020 alone, they reported a loss of N90 million and that’s been fully recovered with just N1 million reported in the recent quarters.

The screenshot is a half-year breakdown of revenue by segment. 

The company recorded 278% growth in the first segment which is even 60% of the revenue generated in the previous financial year while it achieved 96% expansion in the second product segment which is also 70% of the 2020’s revenue.

This is a typical example of explosive stocks, that can spike by 50%, 100% or even 250% in 6 months to a year, which I discussed in my book.

In the last 3 and 6 months, this penny stock has outperformed the NSE index by a double-digit run of  32% and 20%.

Which of the stocks is this?

I have shared the strategy to find stocks like this in my book and if you are a member of my private community, do check the group for updates.

Pre-Order Before 16th September 2021

Explosive Stocks Strategy Guide

You’ll discover:

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[…] posted the two stocks here (1 Red Hot Stocks to Buy as Corporate IT Spends Jump in 2021) and here (1 Unpopular Penni Stock that Qualifies as an Explosive Stock) but as anonymous […]

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