UBA

It still amazes me why UBA stock prices have been trading sideways since the beginning of this year. This bank is one of the strongest in the country, well capitalized to the tune of 547 billion naira, good customer service when compared to others in the same industry. The bank has also gone ahead to make waves in its expansion drives to enter several other countries, including London and the USA.

The management of this bank is very focused, always at the forefront of innovation and good ethical practices. Let us not go into profitability as this bank has also established itself as a very well run bank, averaging well over 40% returns in the past year.

So why has the stock price stayed at 49-50 naira for this long? Even in the midst of the Bull Run that happened in the beginning of this year? Some experts has attributed this to the unified banking reporting schedule that will take off later this year, for which I find holes in that story.
This is because some investors will hold on to the stocks, hoping that the announcement in December will be juicy enough to explain the long wait. Other also explained this away as the activities of stock traders, this could also be faulted as trading would have propelled the stock prices upwards as traders are known to speculate wildly. The bank may surprise us with a dividend plus bonus, fat dividend at that!

Whatever it may be holding this stock down, will likely pass as the stock price will rebound in a no distant time. This will happen when bargain hunters and value investors will find out the intrinsic value of this stock. I am also watching this one.