66 Stocks on the Caution List for 2013

Wednesday, 02 January 2013/ The Analyst, Proshare

Nigerian equities ended the year 2012 with an impressive YTD performance of 35.45%
gain (http://proshareng.com/news/19023/Nigerian-Bourse-Remains-a-Leading-FrontierMarket-in-2012), recording the best performance since 2008- a strong indication that
the Nigerian market has bottomed-out and is set to move into the recovery stage as the
key benchmark indices comfortably settled above its 2-years high, precisely hitting a
34-months high at 28,078.81 basis points.
The Nigerian market garnered above 7,000 basis points amid weak and mixed daily
average turnover recorded in the year; on the back of strong and positive market
sentiments on the part of investors.
This was however achieved with a 70% (approx.) foreign participation as at December
2012; a far cry from the 53% recorded in 2008 and a source of concern about the
dearth of domestic investor stake in the market recovery push.
It is therefore trite knowledge that to effectively build and sustain the market recovery
desired, a conscious attempt at adjusting the domestic-foreign investors mix is required.
The role of Hot Money in the economy, a situation encouraged by the attractive naira
devaluation and interest regime on the one side and the illiquidity or lack of a fiscal
response to resolving the liquidity drain can only provide a cosmetic relief.
To sustain this positive sentiment, the market must address this twin problem in 2013
with a conscious intervention from the fiscal side.
Without this, series of unenthusiastic trading may hit Nigerian bourse more than what
we can imagine on the back of inabilities of quoted companies to live up to market
expectation that may arise from poor economic policies as extensive analysis revealed
significant anticipatory influence on the outlook recorded in 2012.
The sustainability of the strong optimism witnessed on the bourse in the year 2012 is
hinged on stronger commitment to liquidity and stimulation of meaningful economic
growth.
The evidence of this is rather glaring in the sectoral analysis and cherry picking that
characterised market activity in 2012. The value-for-money approach that dictated the
market trend considerably in 2012 led to the exclusion of some stocks as revealed by
price and volume analysis leading to negative investors' sentiments towards these
stocks throughout 2012.
Sadly, the prospects for these class of stocks in 2013 appear blurred as investors are
anticipated to remain cold towards them while the value-for-money approach continues
to dictate the flow of naira votes on the Nigerian bourse.
A cautious approach is strongly advised in trading on the sixty-six (66) stocks listed in
the table below:

Stocks in Limbo throughout 2012

2009

2010

2011

3yrs Avrg
gains

YTD

Sector

Current
Price

5yrsHigh

5yrsLow

UNIONDICON

-93.08%

591.80%

0.00%

166.24%

0.00%

Consumer Goods

4.22

15.39

4.22

UNIONDAC

365.89%

-91.68%

0.00%

91.40%

0.00%

Healthcare

0.50

3.70

0.50

VONO

-76.69%

314.49%

0.70%

79.50%

0.00%

Consumer Goods

2.88

13.23

0.48

COMPANY

PNG

10.30%

0.00%

5.15%

0.00%

Construction/Real Estate

7.28

7.28

7.28

UNIONVENT

5.00%

0.00%

0.00%

1.67%

0.00%

Oil & Gas

0.63

0.63

0.58

NIGWIRE

0.00%

4.88%

0.00%

1.63%

0.00%

Industrial Goods

2.58

2.67

2.24

ABPLAST

0.00%

0.76%

0.00%

0.25%

0.00%

Industrial Goods

3.98

6.89

1.06

WAGLASS

4.76%

-4.55%

0.00%

0.07%

0.00%

Industrial Goods

0.63

0.63

0.63

0.00%

0.00%

0.00%

0.00%

ICT

0.50

0.69

0.50

COURTVILLE
IAINSURE

0.00%

0.00%

0.00%

0.00%

0.00%

Financial Services

0.50

2.34

0.50

NESF

0.00%

0.00%

0.00%

0.00%

0.00%

Financial Services

552.20

552.20

552.20

0.00%

0.00%

0.00%

0.00%

Financial Services

0.50

0.50

0.50

0.00%

0.00%

0.00%

Financial Services

0.50

6.82

0.50

RESORTSAL
STACO
HALLMARK

-0.62%

0.00%

0.00%

-0.21%

0.00%

Natural Resources

3.22

3.24

0.08

CAPALBETO

-14.25%

5.26%

0.00%

-3.00%

0.00%

Construction/Real Estate

95.49

147.00

48.38

SKYESHELT

-9.92%

-3.00%

3.09%

-3.28%

0.00%

Construction/Real Estate

100.00

150.00

0.00

INTERLINK

-4.98%

0.00%

-4.85%

-3.28%

0.00%

Services

4.90

5.42

0.00

-6.24%

0.00%

Industrial Goods

2.86

7.64

2.86

5.76

3.09

AFRPAINTS

0.00%

-4.87%

13.86%

LENNARDS

0.00%

-22.32%

0.00%

-7.44%

0.00%

Services

3.48

LINKASSURE

-23.08%

0.00%

0.00%

-7.69%

0.00%

Financial Services

0.50

6.28

0.48

-9.55%

-4.94%

-9.50%

-8.00%

0.00%

Healthcare

5.05

15.31

5.05

UNIVINSURE

-27.54%

0.00%

0.00%

-9.18%

0.00%

Financial Services

0.50

3.87

0.50

MULTIVERSE

-28.57%

0.00%

0.00%

-9.52%

0.00%

Natural Resources

0.50

2.15

0.50

REGALINS

-31.51%

0.00%

0.00%

-10.50%

0.00%

Financial Services

0.50

2.44

0.50

-11.72%

0.00%

Industrial Goods

10.93

23.26

1.21

-13.33%

0.00%

Construction/Real Estate

14.46

34.45

5.74

EKOCORP

PREMPAINTS

-16.72%

0.00%

18.43%

GCAPPA

-40.00%

0.00%

0.00%

DUNLOP

-48.98%

0.00%

0.00%

-16.33%

0.00%

Consumer Goods

0.50

7.00

0.49

GUINEAINS

-50.00%

0.00%

0.00%

-16.67%

0.00%

Financial Services

0.50

5.25

0.50

HMARKINS

-53.27%

0.00%

0.00%

-17.76%

0.00%

Financial Services

0.50

1.91

0.50

-18.91%

0.00%

Construction/Real Estate

2.66

86.38

2.46

COSTAIN

-68.49%

70.79%

59.01%

SOVRENINS

-57.26%

0.00%

0.00%

-19.09%

0.00%

Financial Services

0.50

6.51

0.50

-8.33%

-54.55%

0.00%

-20.96%

0.00%

Financial Services

0.50

6.30

0.50

-22.02%

0.00%

Agriculture

0.50

3.78

0.50

UNIC
FTNCOCOA

-65.33%

17.31%

18.03%

GNI

-66.67%

0.00%

0.00%

-22.22%

0.00%

Financial Services

0.50

4.19

0.50

OMATEK

-67.74%

0.00%

0.00%

-22.58%

0.00%

ICT

0.50

5.14

0.50

CORNERST

-67.50%

-3.85%

0.00%

-23.78%

0.00%

Financial Services

0.50

7.87

0.50

STDINSURE

-63.09%

-9.09%

0.00%

-24.06%

0.00%

Financial Services

0.50

4.90

0.50

UNTL

-41.72%

-60.53%

29.33%

-24.30%

0.00%

Consumer Goods

0.97

9.20

0.57

-24.81%

0.00%

Industrial Goods

0.50

10.05

0.48

FIRSTALUM

-88.94%

46.00%

31.51%

ASOSAVINGS

-66.86%

-10.71%

0.00%

-25.86%

0.00%

Financial Services

0.50

7.81

0.50

MBENEFIT

-56.76%

-21.88%

0.00%

-26.21%

0.00%

Financial Services

0.50

5.99

0.50

ALUMACO

-4.98%

-74.75%

0.00%

-26.58%

0.00%

Natural Resources

7.75

41.79

3.90

DEAPCAP

-75.52%

-5.16%

0.00%

-26.89%

0.00%

Financial Services

2.02

10.98

2.02

LASACO

-66.67%

-15.25%

0.00%

-27.31%

0.00%

Financial Services

0.50

5.99

0.50

LAWUNION

-82.71%

7.84%

-9.09%

-27.99%

0.00%

Financial Services

0.50

7.50

0.50

INTENEGINS

-69.42%

-20.63%

0.00%

-30.02%

0.00%

Financial Services

0.50

7.72

0.50

CHAMS

-77.82%

-12.28%

0.00%

-30.03%

0.00%

ICT

0.50

3.32

0.50

EQUITYASUR

-90.12%

0.00%

0.00%

-30.04%

0.00%

Financial Services

0.50

5.55

0.50

TANTALIZER

-55.75%

-32.47%

-3.85%

-30.69%

0.00%

Services

0.50

3.99

0.50

DAARCOMM

-83.08%

-10.71%

0.00%

-31.27%

0.00%

Services

0.50

5.90

0.50

ABCTRANS

-59.36%

-30.26%

-5.66%

-31.76%

0.00%

Services

0.50

7.56

0.50

-32.36%

0.00%

Financial Services

1.98

27.96

1.65

-33.02%

0.00%

Consumer Goods

0.50

21.49

0.50

ECOBANK

14.06%

-66.13%

45.00%

BIGTREAT

-78.42%

-20.63%

0.00%

ROYALEX

-80.47%

-24.24%

0.00%

-34.91%

0.00%

Financial Services

0.50

6.50

0.50

CAPOIL

-95.73%

-15.25%

0.00%

-37.00%

0.00%

Oil & Gas

0.50

0.63

0.50

-37.45%

0.00%

Industrial Goods

0.50

14.00

0.48

-38.59%

0.00%

Financial Services

0.50

9.63

0.50

NIWICABLE

-30.77%

-67.78%

UNHOMES

-75.07%

1.18%

UNITYKAP
NIGERINS

-70.15%

AFRINSURE
AFROMEDIA

-78.99%

0.00%

-39.50%

0.00%

Financial Services

0.50

2.38

0.50

-38.14%

16.67%

-41.65%

0.00%

Financial Services

0.50

9.40

0.50

-86.38%

0.00%

-43.19%

0.00%

Financial Services

0.50

0.87

0.50

-44.20%

0.00%

Services

0.50

0.80

0.50

-44.51%

0.00%

Industrial Goods

1.05

11.54

1.05

-46.33%

0.00%

Financial Services

0.50

6.46

0.50

-46.48%

0.00%

Oil & Gas

0.50

2.53

0.50

-46.59%

0.00%

ICT

0.50

14.90

0.50

-50.18%

0.00%

Financial Services

0.50

8.03

0.50

-77.69%

POLYPROD

-29.73%

-60.26%

OASISINS

-72.56%

-66.44%

BECOPETRO

13.79%
41.86%

-76.28%

STARCOMMS/CAPCOM

-56.79%

-17.71%

CRUSADER

-78.64%

-66.24%

10.71%
43.55%
0.00%
16.67%
65.28%
-5.66%

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Tags: TheAnalyst, 2013 Outlook, 2012 Review, Caution, Value for Money Investing, Hot Money, Foreign Investors, Domestic Investors,
Nigerian Stock Exchange, Proshare, Technical Analysis, Performance Review, Investors, Liquidity, PFA, Fiscal Intervention