Fundamental analysis remains our investment philosophy. The stock market undervalues or overvalues stocks due to the considerable role played by emotions. So, we are of the opinion that price is not the same as value. While stock price fluctuates, intrinsic value of stock is unchanged until there is impairment or improvement on the long-term economics of the relevant company. Therefore, our analysts monitor their companies and update our assessment whenever the fundamentals change.

A stock's value is estimated by using a combination of spreadsheet models, relative valuations, risk-return economics and non-quantitative information such as competence and management strategy. Companies' financial statements and interviews are main sources of information for our analyses.

We employ rigorous, comprehensive top-down approach in stock valuation (economy-industry-company analysis). It is pertinent to note that technical analysis plays a major part in our appraisal of stock market performance and direction, price performance and liquidity of stocks. Also, short-term buy/sell decisions which add depth to the market are influenced by technical analysis.

PEST analysis helps to uncover threats and opportunities available to a company. In addition, the stage of the economic cycle in which the country where the company is located, GDP/GNP growth rate, GDP components and their growth rates are valuable tools of our comprehensive analysis.

An industry comprises businesses with similar operating characteristics. We employ varied methods in determining the attractiveness and outlook of the industry in which a company operates. Industry factors such as foreign competition, price wars, capacity and competitive pressures enable us to determine industry's viability.

We dig deep to uncover earnings growth and their drivers. This helps us determining the quality and sustainability of earnings. We do not neglect the risk faced by the company and its solvency.



Bottles of beer produced by Nigerian Breweries, the largest brewery in Nigeria

Headquarters of PZ Cussons  Nigeria, the largest subsidiary of PZ Cussons Group UK

Cocoa plant which is the product of PBC Limited Ghana, a listed buyer of cocoa,coffee and sheanut

Head office of Prestige Assurance, an experienced insurer in Nigeria

3 oil storage tanks of Eterna Plc iNigeria

Total Nigeria Plc service station