Analysis by Abena Brigidi*
After covering the astronomical rise of Fan Milk Limited-Ghana, I started receiving calls from clients and prospects about what stocks to invest in and which sectors to target. Frankly speaking, I am of the view that good stocks can be found in every sector, provided the analyst is willing to spend enough time on research.
To buttress my assertions, I decided to research into the stock market to identify best performing stocks for the last five (5) years. Interestingly, the assessment revealed that, good stock can be found in every industry. The assessment revealed that certain stocks in the Consumer Goods industry, the Oil Marketing industry, and Banking, generated the highest value for investors in the last five years. Below are the top three best performing shares from 2012-2017.
Fan Milk Limited-Ghana (FML),+406.7%: FML tops the overall list of stock that returned highest over the last five years. The company’s share price increased from GHC2.23 in March 2012 to GHC11.30 on 27th March 2017. This represents a rise of 406.7% in the last five years. The impressive share price appreciation can be attributed to FML’s aggressive sales growth, widened distribution network and good management.
Goil Ghana Ltd (Goil), +282.35%: Second to Fanmilk is Goil Ghana Ltd, a company that engages in the distribution and marketing of petroleum products. The company since its listing on the GSE in 2007 has worked tirelessly to surpass Total Ghana Ltd from its number one position. Goil has since then, effectively leveraged its market leadership position to increase its sales and reduce its cost. Not only that, the company has increased its penetration rate in more profitable fuel bunkering and aviation market. These strategies have helped the company to increase its share price from GHC0.34 in 2012 to GHC 1.30 in 2017 representing a rise of 282.35%.
CAL Bank Ltd (CAL), +220%: This young aggressive Ghanaian bank had a strategy that worked perfectly well within the five years under review. The bank carved a niche for itself as a corporate bank that provided long-term commercial loans and financing solutions to large and medium size businesses in Ghana. The approach certainly has borne fruit. The shares of the company increased from GHC 0.25p to GHC 0.80p within the years under review. This represents a rise of approximately 220% for the period under review.
These shares performed marvelously well even though the stock market was generally down, meaning there is always opportunity in the market and analysts should always keep researching.
*Abena Brigidi is the CEO of Nimed Capital Ltd. And investment analyst. Follow her on Facebook @TheInvestmentQueen