Why NCB deserved a look then?
The shares may not be trading in droves recently with the price tending to trade around $17 since early May but investors may be missing a great buying opportunity with a stock that is seriously undervalued.
In Trinidad the stock closed as low as TT$1.04 recently but has moved up to $1.10 on Friday and seems poised to go higher. The bid in Trinidad on Friday’s close was $1.10 (J$19.20) to buy 22,933 units with an offer of 26,000 units at $1.14. On Wednesday the stock traded 69,456 units at $1.08 and gained 2 cents in the process. On Friday 21,322 traded in Jamaica at $18.01 each and 1,396,013 on Thursday between $17 and $18.03. Wednesday saw 21,595 units being traded between $17.30 and $19. One important factor is that the stock is not in great supply.
But it’s the order book on the Jamaica Stock Exchange that is sending a strong message to buy coupled with is 2014 being a year when the results should help stimulate the stock price higher. There are only 280,000 shares on offer in the market but the buying interest is not particularly strong. With the pickup in trading in Trinidad, the price in Jamaica could get a lift and with third quarter results to June which are due in the last week in July, that could strengthen investor’s appetite for the stock and give it a badly needed push.
IC Insider forecasts earnings of $5 per share for the current year (2014), so far NCB reported earnings of $2.38 for the first 6 months of the fiscal year. Well NCB went on the report $4.73 per share for the year to September but it took a long time for the stock to rise. Like good cream, goods stocks will eventually rise. Not only has the stock posted strong gains, investors in it have had a very good payment with increased dividends. Interesting while all the potential was there, there are investors who sold around the $17 price level and moved into Alibaba, it being the rage then. The returns of the former speaks volumes about investing in what is known and buying undervalued stocks as Alibaba has gone nowhere since last year while NCB has grown and is heading higher yet.
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[…] Investments traded 109,856 units to close at $2.85 with a 15 cents loss but traded previously at $3.National Commercial Bank had 100,819 shares trading at $30, Radio Jamaica traded 100,000 shares is at $2.60, Sagicor Group […]
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[…] a matter of time for the break out to take place. Around November last year, an investors sold out National Commercial Bank shares to invest in the newest investing fad at the time – Alibaba. At the time Alibaba was around […]
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[…] National Commercial Bank traded at a new 52 weeks’ high in the morning session on Thursday with 3.025 million units trading. The move helped the all Jamaica composite index to jump by 2,086.18 to reach 102,856.63. The junior market index is also on the move climbing 20.05 points to 777.62. Jamaica Producers slipped 25 cents to $17.25 with 60,000 shares, Kingston Wharves fell 56 cents to $5.95, Pan Jam also fell as the price declined 43 to 57 as only 100 units traded, Mayberry Investments traded 511,000 units at 52 weeks’ high of $2.60, Sagicor Group traded 281,420 units $11. Caribbean Producers that traded at $3 now has 148,763 units on offer at $2.75. Supreme Ventures traded at a new 52 weeks’ high of $3.75. […]
[…] 19 cents to end at $2.88, at the close there was a bid by Mayberry to buy 1,198,980 units at $2.88. National Commercial Bank had 315,733 shares trading with a gain of 10 cents to close at $29.50, Radio Jamaica traded 12,265 […]