Worst Performers: Honeywell Flour Mill Lost 43%, UPL 41%
Honeywell Flour Mills can be bought in the stock market at about N17 billion in raw cash as the food producer company’s share lost about 43% in 2022 despite reasonable rallies in the local bourse.
Apparently, the worst performer in the Nigerian bourse in the current year, trailed by University Press Plc and Livestock Feed Plc, according to data from stocks screened by MarketForces Africa.
Share price depreciation follows its recent acquisition by its immediate competing brand, Flour Mills of Nigeria, setting a mandatory takeover price at N4.20, the price that its block trade was executed.
Recall that Ecowise Horizon and Greywise Investment solutions limited, subsidiaries of Flour Mills of Nigeria acquired 75% of the foods producing company during the year Good money continues to seek opportunities and trading activities in the stock market have become intense amidst a rising inflation rate.
Stockbrokers are executing large buying orders while investors continue to cherry picking, and rally around companies with good fundamentals with healthy earnings outlooks.
However, some companies listed in the local bourse have been burning investors’ net worth over persistent decline in their respective share prices. Growing numbers of stocks have been re-rated due to improved market sentiment.
Companies with weak earnings have been dumped while market participants continue to rebalance their portfolios ahead of the fourth quarter earnings season. >>>Honeywell Share Price Jumps Midday over FMN Acquisition Deal
It suffices to say that lower price provides entry points or even possible opportunity to dilute losses. With the recent rally in the stock market, the loss level has been reduced but highly volatile and heavy burden non-performance still has a large carryover that stockholders may not recoup in 2022.
At the close of the market on Friday, Ticker: HONYFLOUR printed at N2.12 as analysts advised investors to sell the stocks on an expectation of low upside potential. Also, University Press Plc investors have suffered losses as the company’s share price dropped to N1.73, losing 41.16% from the beginning of the year to date.
Sold at N1.19 per share in the local bourse, Livestock Feed has burned down invested funds having lost 38.34% from the beginning of the year to date. The share price of Red Star Express has tumbled by 32.54% as it ended at N2.26 on Friday despite the ongoing rally in the local bourse.
Custodian Insurance has become so cheap also. The Insurance Company has lost 31.41% of its opening valuation in the year, thus ranked among the worst performer in the domestic bourse.
In the bellwether category, it appears that GTCO has broken value in the banking segment, with about a 20% decline in valuation amidst weak earnings performance that started after its holding company’s restructuring.
Nestlé Nigeria Plc has also lost significantly in the year as the closely-held dividend aristocrat share price plunged to N980, having peaked at N1,440 in the year. From the beginning of the year to date, Nestles Nigeria has lost a whopping 29.75% of its market valuation.
#Honeywell Flour Mill Value Drops 42.70% to N16.81bn
