Here is a nice article on Business Day’s website on stocks to consider during the bear run in the NSE. It is based on a study by Afrinvest WA using projected gross earning, profit after tax, earning per share dividend per share, return on equity, price earning ratio and dividend yield. Their top stocks are Oceanic Bank, Bank PHB, Afribank, Dangote Sugar and International Engergy.

Oceanic Bank
As at the close of trading August, 2008, Oceanic Bank finished at N21.27 per share. This compared with N 24.54 as at the end June 27, 2008. The bank’s gross earning during the 2007 first year was N74. 5 billion and is expected to rise to N138.24 billion by the end of 2008 profit after tax was N17.55 billion and is expected to grow to N34.1 billion. Each investor earned N1.50 and dividend of N1.02 both of which are expected to rise to N1.76 and N1.21 respectively. Price earning ratio and is currently 20.22 times projected to drop to 13.44 times. The stock’s price is expected to close higher at N38.00 per share by the end of the year.

Bank PHB
Price at N20.79 per share August 11, Bank PHB is expected to appreciate to N38.0 per share. The forecast based on its current and expected performance indicators. The bank’s gross earning as at the close of business in the 2007 first half was N36.16 billion which is expected to grow to N75.4 billion, at the end of the 2008. Profit after tax which was N7.75 billion may grow to N28.7 billion by the end of the second half. Earning per share is expected to increase to N1.37 from N1.20 while dividend per share may hit 80 kobo from 70 kobo. Return on equity is projected to decline from 21.4 percent to 16.5 percent.

International Energy
As at the close of trading August 8, International Energy finished at N3.24 per share, a 69.6 percent increase compared to N1.91 per share June 27, 2008. And the stock may rise to N7.50 if current market sentiment is sustained. The company’s gross earning for 2007 first half is N2.68 billion to increase to N4.7 billion or 76.2 percent by the year end . Profit after tax is expected to rise by 99.3 percent to N1.5 billion from N0.752billon. Earning per share would grow by 75.0 percent to 28 kobo from 16 kobo. Dividend per share by the end of 2008 would be 18 kobo, up from 9kobo while return on investment is projected to rise by 12.9 percent. The price earning ratio would improve from 29.9 times to 13.1 times. Dividend yield is expected to grow by 4.3 percent from 4.7 percent in 2007.

Dangote Sugar
Dangote Sugar Refinery traded at N27.20 per share August 11, compared with N24.80 June 27, 2008. In the light of some recent performance indicators, Dangote could rise to N40 by the end of the year.
The company’s gross earning for 2007 first half was N80.64 billion and is expecte4d to climb by 4.5 percent to N84.3 billion by the end of December 2008. Profit after tax is to leap by 26.6 percent to N27.2 billion from N21.4 billion in 2007 while earning per share which was N2.15 would rise by 26.5 percent to N2.72 billion. Dividend per share is expected to be N2.00 from N1.7. Return on investment is expected to grow by 79.7 percent. The price earning ratio which was 18.1 times in 2007 should drop to 11.7 times.

Afribank
As at the close of business on Monday, Afribank closed at N25.00 per share, as against N22.60 in June. The stock is forecast to rise to N32.00 per share. Afribank is expected to grow gross earning by 72 .2 percent from N27,5 billion in the 2007 first half to N 47.4 billion .Profit after tax is to rise by 77.1 percent from N5.2 billion to N9.2 billion. Earning per share is to drop by 12 percent from N1.02 to N0.89. Dividend would grow from 30 kobo to 50 kobo. Return on investment is to decline by 5.8 percent while price earning ratio would rise from 11.4 times to 27.0 times.