Linkage Assurance, C & I Leasing, Fidson top stock pick this week

This is not a buy, sell or hold recommendation but a stock investment guide.

Unlike the penultimate week when Nigerian stocks, in the middle of a more active market, generally depreciated, trade was relatively muted last week, and the main equity index advanced this time around, adding 0.5 per cent.

Nigerian stocks continue to hold on to the resilience they have earned for themselves among their frontier market peers in recent years to attract the big local interest needed to compensate for the mass departure of foreign investors and drive gains.

This year alone, stocks have returned 30.7 per cent to date when the expectation is that the reasonably attractive yields on fixed-income securities will do so much in turning the flow of investors’ capital away from stocks.

PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.

The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

Linkage Assurance

Linkage Assurance tops this week’s pick for currently trading significantly below its intrinsic value and close to its lowest price in 52 weeks, brightening its chances of strong price appreciation in the future.

The underwriter’s price-to-earnings (PE) is 2.3x, its relative strength index (RSI) is 30.7 and its price-to-book (PB) ratio is 0.5x.

C & I Leasing

C & I Leasing makes the cut for trading below its intrinsic and at its lowest price in 52 weeks. The PE ratio of the company is 7.3x, while its RSI is 44. Its PB ratio is 0.2x.

Fidson Healthcare

Fidson appears on the list for trading close to its 52-week low. The drugmaker’s PE ratio is 9x, while its RSI is 20. Its PB ratio stands at 1.5x.

NEM Insurance

NEM makes this week’s list for currently trading below its underlying value. The insurer’s PE ratio is 1.9x, and its RSI is 38.1. NEM Insurance’s PB ratio is 0.8x.

Nascon Allied Industries

Nascon appears in the pick for currently trading near its lowest price in 52 weeks. Its PE ratio is 6.9x at the moment, while its RSI is 29.2. The PB ratio of the salt maker is 2.2x.