The Stock Pitch Competition being organized by the Young Investors network with the support of the Ghana Stock Exchange, UMB Stockbrokers Ltd and CITI TV has entered the finals which is set to be held on Friday, 27th November, 2020.
Young Investors stock pitch competition is the culmination of Investors skills gained and provides hands-on mentoring in financial analysis for students. Teams which consist of two to three students picked a publicly traded company listed on the Ghana stock exchange to analyze and write a pitch report on the selected company with a” buy”,” sell” or” hold” recommendation.
On Friday 20th of November, 2020, nineteen teams pitched in their selected companies. The experience was really amazing. A lot was learnt during this competition. Some students also got to challenge themselves because they had never taken part in any intellectual competition before. 19 Teams pitched in various companies listed on the Ghana Stock Exchange, more than 70% selected MTN as their choice of pitching. The competition was very competitive as the 11th position which was taken by HIJADOM missed the position by just a point.
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.
The maiden edition of the Young Investors Stock Pitch Competition came to a close on 27th November, 2020 with Pharmacy Students from KNUST taking away to ultimate prize.
A Stock Pitch Competition is a summary of a potential investment idea into a company listed on the Ghana Stock Exchange. The participants pitched a buy, sell or hold position on a company of their choosing and presented their findings to a panel of judges who selected the best.
Over 150 students across the various tertiary institutions in Ghana were part of a training program embarked on by the Young Investors Network. Out of this number, the students formed 19 Teams who participated in the competition from which the winners were chosen.
The competition attracted students from Ashesi University, University of Ghana, KNUST, Accra Technical University, University of Cape Coast and Takoradi Technical University.
The winners, Gerald Anim Acheampong, Bright Antwi and Emmanuel Boamah are students studying Pharmacy at the KNUST. The second position was taken by Charis Borquaye and Obed Bright Nyame Antwi, the former studies Construction Technology and Management at the KNUST and Obed studies Mining and Engineering also at KNUST. The third place went to Godwin Kojo Odoom a former Psychology student of the University of Ghana and Williams Obeng BSC. Administration, also from the University of Ghana. In that order, the winning teams were The Traders, Wealth Knights and TK Research.
The Young Investors Network (YIN) has launched the 2021 capital market and stock pitch competitions to, once again, enhance young people’s understanding of the financial market while they get rewarded.
In collaboration with the Ghana Stock Exchange (GSE), the UMB Investment Holdings & Stockbrokers, this year’s competition will spread its tentacles to all second-cycle institutions in Greater and tertiary institutions across the country.
The capital market quiz is targeted at the students in the senior high schools (SHS) while the stock market competition is targeted at tertiary students.
The Executive Director of the Young Investor Network (YIN), Mr Kofi Kyei Busia, said the stock pitch – as a combination of ideas of stocks listed on the exchange – will give an opportunity to the Network to train students on the stock market to enable them to sell what they think is the best listed.
He noted that due to the rigorous training that went into last year’s training, the predictions of the students who pitched the stocks were able to get it right, as that reflects the current trend of the exchange.
For instance, the student who had undergone the training predicted that MTN Ghana, which was at 0.65p was going to rise to beyond GH 1.00 and true to that, MTN Ghana is currently trading at GH¢1.20.