Nothing puts a smile on one’s face like a high- flying growth stock. Not only will stock in your portfolio that has returned 100%, 200% or even 500% help you build wealth faster but it also makes up for several losing stocks.
While this makes high-growth stock appealing, how can one spot such an opportunity before others? Amongst several strategies shared by top investment analyst, turnaround stock trading strategy seems to be the most rewarding of all.
What is a turnaround stock strategy?
In simple term, turnaround strategy picks temporarily out-of-favour stocks with upside profit potential. Of course, not all bearish companies offer potential turnaround opportunity, but this investing principle believes that bearish stocks with real value will always prevail regardless of the stock’s setback.
In the NSE market, one of the stocks that have been trending down week on week and has got everyone asking questions after a significant decline in EPS to 44k from N2.57 is Cement Company of Northern Nigeria (CCNN).
The company is engaged in the production and marketing of cement under the brand name “Sokoto Cement”.
In its latest financial results, the stock recorded an 82.7% fall in distributable earnings following a merger arrangement with Kalambaina Cement Company Limited 2018. Since FY2018 was released, the stock has lost up to 30% of its market value and might shed more as investors price in expected full year’s EPS for 2019 (based on 13.1 ordinary shares outstanding compared to pre-merger shares of 1.2b).
As of this analysis, CCNN stock trades for N14, 56% down from its 52-weeks high of N32.At the current market price, this may not be a stock to trade now but it does offer real value that could reward smart investors who key in at a bottom price.
Here are some key metrics that support the fundamentals of CCNN: