Investors Note: Before Dangote Cement Price Recovery Begins
DANGOTE Cement is trading at N394 per share, a significant discount of 42.62% to its 52-week high on the Nigerian Exchange. The company is now valued at N6.713 trillion, and when you convert this to US dollars, you will be getting something like $4.2 billion.
Here is it: every time Forbes puts out a billionaire ranking, Dangote Cement stock market price increases. If you don’t know, Aliko Dangote’s target is to become the world’s richest man—inside source.
In its best form, Dangote Cement share price was at N686.7 in the equities market. What is the chance that it will pick up again? It is almost 100% certain that Ticker: DANGCEM will climb. How much patience do investors seeking to speculate on this stock need to exercise? Enough. Here is the math.
Imagine you can pump N7.88 million to purchase 20,000 from the local bourse now at N394. In the next two to three months, it is more likely to see Dangote Cement share price at N500—a conservative projection.
The fact that the stock is closely held makes it hard to move, but when it does, it is like the earth crumbling. Why the projection? Two things drive stock prices. Investor’s sentiment and then fundamentals.
Dangote is in the public eye; if Forbes releases a billionaire ranking and Dangote misses the first position, rest assured the cement company share price will rise faster.
It has happened, and it will happen again and again. Forbes downgraded the Aliko rating as African richest before Femi Otedola acquired huge shares in Dangote Cement. Who doesn’t want to be an ally to Africa’s richest?
Dangote Cement is also doing well in terms of revenue capability, though rising costs and foreign exchange pressures have exposed its profit margin. Still, the company is ahead of the Cement Oligarchy profit-making machines.
There is a possibility that its market price will adjust after earnings release. Investors’ reaction will depend on the earnings direction and dividend declaration.
Back to the math. Investors N7.88 million could become N10 million in the short term. Is this worth it for you? Double down, and stay back and watch. It is almost certain the cement stock will recover. #Investors Note: Before Dangote Cement Price Recovery Begins Chinese Firm Expresses Support for $20b Ogidigben Gas Project
