The just ended Young Investors Stock Pitch Competition brought together young people, who have interest in finance and investment from across Ghana, to conduct an analysis on selected companies listed on the Ghana Stock Exchange; and further recommend whether investors should either buy shares in the company, sell their holdings or hold on to their shares in the company.
Some of the highlights of the pitchers’ presentations are summarized in this write up to serve as a guide for investors in 2021 and beyond. The pitchers formed teams and conducted their presentations before a panel of investors, who also served as judges.
The intrinsic price of MTN Ghana stands at GHp93. The current price of GHp63 puts the stock in a strong buy position for the stock. The continuous profitability is one reason for investors to remain confident in the company.
Both teams jointly recommended a buy for GCB. TK Research however recommended a hold for shareholders who are contemplating on selling their shares. Both teams were of the view that GCB is currently trading below its fair value of about GHS 6.00. A strong historical trend of earnings with a solid projected figure puts the stock also in a strong buy position.
These teams are of the view that Ecobank Ghana Ltd is one of the stocks expected to produce some good returns for investors. With an EPS of 1.38, PE Ratio of 3.6x and an intrinsic value of GHC9.83, there is no doubt that the share price will remain same in the coming months.
Team Excellence’s analysis also concluded on a buy for Total Petroleum Ghana which according to their analysis is trading at 70% below its fair price. The company’s earnings having grown at about 18% year on year and a dividend yield of 6.55% are some of the indicators that puts Total Petroleum as one of the top stock market picks.
The share price of Guinness Ghana Breweries Ltd is expected to shore up in the coming months partly due to the resilience shown especially in this COVID period by bagging a net profit of GHS20.6M in Quarter 3 of 2020. An intrinsic value of GHS3.23 provides a great opportunity for investors to look at considering the current price of Ghp90.