4 Customs Street
4 Customs Street is our weekly newsletter, where we focus on the stock market.
Good morning, how are you doing?
How was your weekend?
We had a relaxing one, and we’re looking forward to a great week.
We know Mondays are busy, and you are probably reading this on your way to work, or just before you start your day. So, we’ll keep this simple and interesting.😉
Every Monday, we look at key financial events that took place in Nigeria last week and what’s happening in the United States.
A green week
The NSE All-Share Index gained 0.63% last week. This index measures the average performance of stocks. On average, stocks went up at that percentage last week. Some stocks did better than the average, and others did worse.
Cadbury Nigeria Plc gained 12.88% to close at N7.45. It was the best performing stock last week.
Champion brew Plc was the worst performing stock, which declined by 25.26% with a closing price of N0.71.
Company Financials
4 companies released their financial results last week. However, we zeroed in on Lasaco Assurance Plc and Northern Nigeria Flour Mills Plc.
From their released first quarter 2020 numbers last week, Lasaco Assurance made a profit after tax of N266 billion, which is up 4% from the N256 billion made in 2019. It would pay a proposed dividend of N0.05 kobo per share.
Northern Nigeria Flour Mills Plc revenue appreciated by 113.08% to N8.84 billion from N4.41 billion made in March 2019. A proposed dividend of N0.15 kobo per share would also be paid to its shareholders.
A dividend is a portion of the company's profit paid to shareholders.
Kindly follow our Instagram page for an in-depth and detailed analysis of released financial results.
Nothing major
Guinness Nigeria notified the Nigerian Stock Exchange of a fire incident at one of their warehouses. Fortunately, no death, injury or major material loss was recorded.
To close off on the Nigerian markets, Flour Mill which is one of Nigeria's leading integrated food businesses announced the appointment of a new chief operating officer named Mr Olusanya. We look forward to the strides that would be made during his tenure.
A Trip to the US
Tesla Stock Split
On the 12th of August, Tesla, which is an American electric vehicle and clean energy company, approved and declared a five-for-one stock split. Tesla is currently trading at 1,650USD per share.
This means with the stock split, 5 shares will replace each share a person owns i.e. everyone holding 1 share will get an additional 4.
The additional shares of common stock for each then-held share will be distributed after the close of trading on August 28, 2020, and trading will begin on a stock-split adjusted basis on August 31, 2020.
When companies' share prices move very high, some consider splitting the shares so that the lower prices will attract more investors. This can be a positive for stock performance over the long term.
Fortnite vs Apple vs Google
A battle royale ensued last week among these three epically large companies. Fortnite was kicked off from both the Apple and Google Play Store after attempting to bypass the 30% fee Apple and Google charge developers. Epic countered this action by filing lawsuits against Google and Apple.
For those who don’t know, Fortnite is an online free to play video game and Epic makes money from the in-game purchases.
This battle is very huge. The Fortnite game has been downloaded over 250 million times on iOS alone, and generated $4.2 billion over 2018 and 2019, which signals a hugely profitable business model about to be halted completely.
This battle also comes at a time when both Europe and the US are scrutinizing the power of Apple, Google and other tech giants. What becomes of these 3 large companies from this battle? We would bring you more updates as it comes.
Mesoblast Limited gained 51% last week and was the best performing stock.
Mesoblast, is a small-cap biotech company with listings on both the ASX and the Nasdaq.
The company acquired the rights to develop and commercialize certain regenerative medicine technologies aimed at innovative ways of treating inflammatory diseases.
So, the shares traded higher to close at $17.88 last week Friday after the company announced the Oncologic Drugs Advisory Committee of the FDA voted in favor of its RYONCIL for efficacy in children with steroid-refractory acute graft -versus-host disease.
This is where we draw our money curtains for the day and wish you a profitable week.🤗
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To avoid making this newsletter super long, we do a more in depth analysis of financial results on our Instagram page.
