Stock Analysis

OVERVALUATION can never be ruled out in any stock market primarily because price making is as affected by stock brokers' perception and expectations as by the performance of quoted companies and basic laws of supply and demand. Yet the process is so dynamic that new prices can be fixed for any stock or equity each trading day.

However, that a company is potentially overvalued does not make it unattractive for investment. In fact, in the case of blue chips, overvaluation can be taken for granted because of the relative level of investors' interest since every one desires safe and high yielding equities. The worst it can do is make such equities rather outside the reach of investors with limited funds.

WHEN the shareholders of Unilever Nigeria PLc, met on April 29. Board chairman, Apostle Hatford Alile turned himself into a Tarzan of sorts. Literally beating his chest, he declared” “2009 was a strong year for Unilever Nigeria. We have delivered the expected results by focusing on perfect execution and consumer relevant innovation.”

NATURALLY, not everybody can be a successful gambler. Some are born to be jus t that while no matter what,others can not just smell gold therein. But one thing is sure; when gamblers play winning hands so smoothly, many are tempted to try their luck or at least lick their lips in wishful thinking.
Take Benue Cement PLC as an example. Only about six years ago, it was dead to the world. The machines were cold and silent a dust gathered to form cakes providing homes for cobwebs.

IN this edition, the sector by sector quick run down on the stock market by the end of the first quarter, is rounded with observations on yet to be covered sectors.

INDUSTRIAL/DOMESTIC PRODUCTS
There was limited interest and attraction in this sector with exceptions offered by Vitafoam and BOC Gases. Vitafoam remained the most attractive with sector low Price earnings ratio (PER) and fairly large parcel deals within the quarter.
All else, either closed at period low or, like in the case of First Aluminium, retained a high  most likely it was already so close to par beyond which no equity is any more allowed to fall.