The NSE All-Share Index and Market Capitalization depreciated by 0.48% to close the week at
41,022.31 and N14.860 trillion respectively.
Similarly, all other indices finished lower with the exception of NSE Premium, NSE Banking, NSE
Insurance, NSE Oil/Gas and NSE Lotus II indices that appreciated by 0.35%, 0.45%, 0.83%, 0.13%
and 0.34% respectively while the NSE ASeM closed flat.
As usual, I pick recommended stocks, using a combination of technical and fundamentals every week, that will sustain their momentum from a pool of previous week’s top gainers. I believe that stocks that post a weekly gain in the midst of a bearish market are investors toast, so why waste time on just financial statement analysis when I can use my technical tools to pick fast-rising stocks with strong potentials.
If you have checked my best stocks to buy and cash out by year-end, (see here) you will notice that they are currently selling at a high price per share.
Okomu oil closed the previous week N90 (from N81, 11.11%). The stock has been trending upward after the company released an impressive Q1 result:
- 21% revenue growth,
- reduction in cost to sales ratio from 20% in Q1, 2017 to 8% in Q1, 2018
- a significant increase in gross profit margin to 90% from 79%
- PBT growth of 18% and PAT growth of 13%.
The possibility of Okomu oil share price touching the N100 mark isn’t far again as all indicators on my chart reveal a strong bullish trend.
Caverton Offshore Support
Caverton closed the week at N2.61, from N2.4 (8.75%). The company had just confirmed the commencement of its contract with Chevron to provide logistics services to the oil company. This is one of the stocks that is directly correlated with the oil market; a bullish oil price brings in more money to Caverton’s clients, hence increase the possibility of sustained cash flow and contract renewal.
In its latest Q1, 2018 result, the company witnessed a drop in its top line as a result of non-renewal of its contract but this isn’t going to impact overall performance as the newer contract from Chevron-NNPC JV is believed to provide much buffer and cash flow.
Technically, Caverton stock has just shown a crossover on RSI and MACD indicators; possible bullish signal investors can quickly use to enter now. The possibility of Caverton closing above N3 is near.
What I noticed on these two stocks is that their volume growth witness in the last two trading days of the previous week was huge; a sign that new buyers may have taken a position ahead of capital appreciation.
Disclaimer: This is my personal opinion on stocks to trade and not a buy/sell advice, consult your financial analyst for more details.