Top Gaining Stocks to Watch This Week, 3rd April

The NSE All-Share Index and Market Capitalization appreciated by 0.08% to close the week at 41,504.51 and N14.993 trillion respectively.
Similarly, all other indices finished lower during the week with the exception of the NSE Premium, NSE Consumer Goods, NSE Lotus II and NSE Pension Indices that appreciated by 1.15%, 1.73% 1.58% and 0.34% respectively

On a weekly basis, we pick top stocks to watch from the list of previous week gainers, these are stocks we think will continue their upward move following week.

Wema Bank

The banking stock gained 24k to close at 99k (from a market opening of 75k), that’s like 32%. Technically, the stock is looking good and set to continue its move as all indicators, on daily, weekly and monthly chart, signals a buy entry.

Caverton Offshore Support

The oil stock gained 18k to close at N2.67 (from a market opening of N2.49), that’s like 7.23%. Technically, the stock has just broken a trend channel to the upside.

Also, Caverton stocks had just released its 2017 audited result and key ratios weren’t bad. Let’s look at the figures.

Group Financial Highlights:
• Revenue for 2017 is N20.5bn, (N19.3bn December 2016)
• Operating Profit, (excluding other income), is N4.2bn, (N2.2bn December 2016)
• EBITDA for the year is N5.7bn, (N3.2bn December 2016).
• Profit before tax of N3.9bn, (N1.1bn December 2016)
• EPS is 77 kobo, (18 kobo December 2016)

Profitability Ratios
• Gross Margin of 35% (40% December 2016)
• EBITDA Margin of 28% (17% December 2016)
• Net Profit Margin of 13% (3% , December 2016)
• EBIT/Interest Expense of 3.8x, (1.7x December 2016)

Capital Structure ratios
• Net debt/EBITDA of 2.48x (3.67x December 2016)
• Net debt/Equity of 0.90x (0.90x December 2016)
• Total Debt/Total capitalization of 51.3% (52% December2016)
• Asset turnover of 44% (47% December 2016)

That’s all for now and I hope you will take action now.