As Year Ends Tuesday, Investors in 13 Companies Relish Gains of over 100%

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As the year draws to a close on Tuesday, investors in 13 companies are relishing the high returns they have earned on their investments in form of capital gains. The 13 companies have fetched the investors’ capital gains of over 100 per cent with a particular firm returning over 1,000 per cent growth.

THISDAY checks showed that the 13 companies have recorded capital gains of between 109 per cent and 1,301 per cent.

The stocks are Presco Plc, Livestock Feeds Plc, Transcorp Plc, Champion Breweries Plc, Jos International Breweries Plc, and Union Dicon Salt Plc.

Others are Cadbury Nigeria Plc, Wema Bank Plc, Evans Medical Plc, Fidson Healthcare Plc, Conoil Plc, Forte Oil Plc and MRS Oil Nigeria Plc.

An analysis of the stocks showed that Forte Oil Plc returned the highest capital gain of 1,301 per cent. The equity, which opened the year at about N7, soared to over N100 last Tuesday on renewed demand by investors.

The oil products marketing firm attracted high demand from investors who are impressed with its recovery from losses and future potential. The company posted a growth of 306 per cent in profit after tax for the nine months ended September 30, 2013, rising from N656 million in 2012 to N2.669 billion.

The Chief Executive Officer of Forte Oil, Mr. Akin Akinfemiwa, said the strong performance was a testimony of the clear focus on business transformation initiatives, which include solid corporate governance and business ethics, enhanced safety health and environmental practices across all business lines and superior customer service delivery.

“We remain committed to our mission of building a long-term successful company, boosting investor confidence by making Forte Oil Plc the investment of choice in Nigeria and globally, and creating and sustaining robust returns to our shareholders,” he said.

Transcorp Plc closed with second highest return of 327 per cent, while Champion Breweries Plc ended with 307 per cent to occupy the fourth position.

Evans Medical Plc recorded 303 per cent, while Conoil Plc posted 231 per cent. Jos International Breweries Plc recorded 201 per cent, while Livestock Feeds posted 192 per cent.

Others are Fidson Healthcare Plc (166 per cent), Union Dicon Salt (UDS) Plc (161 per cent), MRS Oil Plc (129 per cent), Presco Plc (124 per cent), Wema Bank (121 per cent) and Cadbury Nigeria Plc (109 per cent).

Although Forte Oil posted an unprecedented growth of 1,301 per cent, UDS equally recorded a steep rise that stunned many market operators. The 161 per cent growth recorded was achieved within one month after CBO Capital Partners bought into the salt making firm.

Before CBO Capital, an investment and project development firm based in Lagos, bought into UDS, the company’s equity stagnated at N4.22 for about 11 months. However, investors renewed their demand for the shares after the deal was announced on November 13. And the stock began to enjoy a consistent growth, rising from N4.22 to close at N11.

In the deal between UDS and CBO Capital, the core investor agreed to acquire 44 million units at the par value, and 240 million units at a placement price of N14 each.

Other aspects of the deal include a management contract for an initial two years. Thereafter, the deal would be subject to review, and if performance is satisfactory to both parties, the core investors would have the management contract extended.