How to Pick Great Nigerian Stocks To Buy Using Quarterly Result

Post Categories:   Company Analysis,Stock Trading Strategies

3 thoughts on “How to Pick Great Nigerian Stocks To Buy Using Quarterly Result

  • I just Reviewed this Transcorp PLC stock you used in your example and the very first thing I always check is their debt/equity ratio and based on their most recent Q1 balance sheet it stands at 1.0 which is high, any vigilant company should maintain 0.50 or less. As they make profits it goes into settling debts. Needless to say I stopped the review and won’t be buying into this company.

  • Hi Tochi, thank you for sharing important and useful tips, Debt to Equity, no doubt, is key but at times, it’s not best analyzed on a single-year basis, a trend analysis will help understand better, is the company debt to equity increasing or reducing? a company with debt to equity of 0.1 could post a d/e of 0.5 in the following quarters while that of another could reduce from 1 to 0.2.

    But your point is valid.

  • Thanks… That makes sense, I’ll go back to check the trend.

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