The bearish trend that enveloped the capital market since Wednesday January 13, 2010 as a result of profit taking consolidated the firm grip at the end of transactions yesterday Thursday January 14 with the market capitalization dropping N73 billion the highest change effected either positive or negative on the Nigerian Stock Exchange (NSE) since this year.

At the end of transactions yesterday, the market capitalization closed at N5.257 trillion while the All-Share Index (ASI) shed 307.44 points from 22,252.38 points to close at 21,944.94 bases points. Investors who shared experience of the market concurred that the market is still reacting to profit taking from the few days of bullish run. According to one of them, the situation will continue to alternate each other like this for some times now, adding that recovery of the market will be gradual.

A total of 456,361,207 shares worth N2.735 billion exchanged by investors in 7,042 deals were recorded. The figure is a sharp departure from the range slated for the market for the new year by investors. Seventy-six stocks featured on the price movement chart out of which mere 19 stocks gained while whole 57 others fall laggards. This seems to a total return to the bearish days before yuletide.
UACN, May and Baker, Julius Berger, Zenith and Red Star Express led on the gainers’ table with 96 kobo, 22 kobo, 20kobo, 20 kobo and 12 kobo to close at N39.39, N4.90, N29.60, N16.00 and N2.62 per share respectively. On the losers’ side, Nestle, Enamelware, Flour Mill, PZ and UAC-PROP topped other losers with 290 kobo, 278 kobo, 204 kobo, 103 kobo and 100 kobo to close at N252.00, N52.85, N38.81, N24.97 and N20.50 per share respectively.

Meanwhile investors who assembled at the press gallery were visibly seen calculating stock movement on the screen while seriously scheming which stock to sell for maximum profits. One of them, Mr. Patrick Ekwemozor, though a textile dealer said that he understood that the market boomed and so wants to take some profits.
At the end of transactions on Wednesday, investors staked a total of 666,776,619 shares worth N3.403 billion that changed hands in 7,426 deals. Although the market recorded depreciation in indicators, the volume of transactions yesterday was positively above the volume netted the previous day. This is because Tuesday volume of transactions stopped at 406,237,865 units valued at N2.134 billion in 6,743 deals far below the 666.78 billion shares of Wednesday.

A total of 80 stocks featured on the price movement table on Wednesday January 13 which is one stock above the figure that featured on the chart the previous day. Out of the 80 that featured yesterday, only 30 made the gainers’ table as against the 59 that gained on Tuesday. Yesterday Wednesday, also, 50 stocks fall as laggards sharply above the 20 that dipped on Tuesday. One remarkable feature of transactions since the new year is the fact that blue chip companies are becoming regular on the gainers’ table while the penny stocks control the losers’ territory.

Benue Cement Company (BCC), Nigerian Bottling Company (NBC), African Petroleum (AP), Cadbury and Academy Press led other stocks on the gainers’ list with 121 kobo, 118 kobo, 95 kobo, 58 kobo and 31 kobo to close at N48.11, N24.82, N37.10, N12.31 and N6.55 per share respectively. On the losers’ table, Nestle, Flour Mill, Guaranty Trust Bank, First Bank and Ashaka Cement topped other losers with 914 kobo, 214 kobo, 83 kobo, 79 kobo and 63 kobo to close at N254.90, N40.85, N16.07, N15.14 and N13.20 per share respectively.

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Courtesy of FSDH and TRW Brokers, here are the stats for stock performance for 2009. It wasnt a pretty picture. The NSE index declined 33% from 31450 to 20827.

Here are the top gainers:

Here are the top losers:

The following is a list of Top Penny Stock Gainers going into December 2009. These are penny stocks located on the NYSE, Nasdaq, and AMEX. This list does not include OTC or Pink Sheets stocks.

Top Penny Stocks List – December 2009

#1 Cell Therapeutics, Inc. (CTIC) – $1.11 Up 693% in 2009
#2 Tower Semiconductor Ltd. (TSEM) – $1.02 Up 629% in 2009
#3 Spanish Broadcasting System Inc. (SBSA) – $0.68 Up 580% in 2009
#4 EntreMed Inc. (ENMD) – $1.00 Up 525% in 2009
#5 Astrotech Corp. (ASTC) – $1.61 Up 519% in 2009
#6 Nextwave Wireless Inc ( WAVE ) – $0.54 Up 500% in 2009
#7 Zhone Technologies, Inc. ( ZHNE ) – $0.48 Up 494% in 2009
#8 Infosonics Corp. (IFON) – $1.39 Up 456% in 2009
#9 Sirius XM Radio Inc. (SIRI) – $0.63 Up 424% in 2009
#10 Authentidate Holding Corp. (ADAT) – $1.27 Up 388% in 2009
#11 Angiotech Pharmaceuticals, Inc. ( ANPI ) $1.28 Up 392%
#12 NaviSite Inc. (NAVI) – $1.95 Up 388% in 2009
#13 LTX-Credence Corporation (LTXC) – $1.30 Up 381% in 2009
#14 CEL-SCI Corporation (CVM) – $1.29 Up 345% in 2009
#15 Globalstar Inc. (GSAT) – $0.88 Up 340% in 2009
#16 Interleukin Genetics Inc. (ILI) – $0.85 Up 325% in 2009
#17 Avanir Pharmaceuticals (AVNR) – $1.74 Up 324% in 2009
#18 Comstock Homebuilding Companies, Inc. (CHCI) – $0.71 Up 318% in 2009
#19 Jamba, Inc. (JMBA) – $1.79 Up 316% in 2009
#20 Helicos BioSciences Corp. (HLCS) – $1.62 Up 315% in 2009

Other Rising Stocks:

Rite Aid Corp. (RAD)
Westell Technologies Inc. (WSTL)
Arotech Corp. (ARTX)
FSI International Inc. (FSII)
Hemispherx Biopharma, Inc. (HEB)
Borders Group, Inc. (BGP)
Inhibitex Inc. (INHX)
CytRx Corporation (CYTR)

Today’s Biggest Stock Market Gainers – Top 2009 Stock Gainers – Top 2009 Penny Stocks – Stock Forum – Hot OTC Stocks

Why is a stock that costs N50 considered cheaper than another stock priced at N10? This question opens a point that often confuses beginner investors: the per-share price of a stock is thought to covey some sense of value relative to other stocks. Nothing could be farther from the truth. In fact except for its use in some calculations, the per-share price is virtually meaningless to investors doing fundamental analysis. If you follow the technical analysis route to stock selection, it’s a different story, but for now let’s stick with fundamental analysis.

The reason we aren’t concerned with per-share price is that it is always changing and, since each company has a different number of outstanding shares, it doesn’t give us a clue to the value of the company. Gone are those days when Nigerian Breweries in the brewery subsector was the most capitalized company listed on the floor of the Nigeria Stock Exchange. In the market now the banks are in a tussle over which of them will emerge the most capitalized bank because of the measure of their value.

For that number, we need the market capitalization or market cap number. Find below current StockPicks’ 40 most capitalized stocks.

The market capitalization is calculated by multiplying the per share price by the total number of outstanding shares. This number gives you the total value of the company or stated another way, what it would cost to buy the whole company on the open market.

Here’s an example.

Stock price = N50

Outstanding shares: 50 million units

Market Cap: N50 x 50,000,000 = 2.5billion.

To prove my opening statement, look at this second example:

Stock price : N10

Outstanding shares: 300 million units

Market Cap: N10 x 300,000,000 = N3billion

This is how you should look at these two companies for evaluation purposes. Their per share prices tell you nothing by themselves.

What does market capitalization tell you? First, it gives you a starting place for evaluation. When reviewing a stock, it should always be in a context like .. how does the company compare to others of similar size in the same industry? The market generally classifies stocks into three categories:

Small cap under N1billion units

Mid cap N1- N10 billion units

Large cap N10 billion units Plus

Some analysts use different numbers and others add micro caps and meg caps, however, the important point is to understand the value of comparing companies of similar size during your evaluation.

You will also use market cap in your screens when looking for a certain size company to balance your portfolio.

As I conclude this week,  don’t get hung up on the per-share price of a stock when making your evaluation. It really doesn’t tell you much. Focus instead on the market cap to get the picture of a company’s value in the market place.