Good evening, family! Let’s talk about the 'Elephant in the Room.' Premier Paints has been one of the top gainers this week, but let’s look at the numbers behind it.
• The Good: They are back on the board, they are profitable again, and revenue is up 14.5% to ₦149.91 million.
• The Reality: The P/E ratio is now over 1,300x and equity is still technically negative (accumulated losses).
Is this 10% daily rally a 'Fundamental Re-rating' because of the Xenergi acquisition, or is it just 'Low Float' volatility? Personally, I’m being 'Stoic' here. I love a turnaround, but I prefer a safety margin.
Which of these are you?
1. Bullish: It’s going to ₦50!
2. Bearish: It’s a trap, the fundamentals aren't there yet.
3. Watching: Waiting for the acquisition details before moving. 
• The Good: They are back on the board, they are profitable again, and revenue is up 14.5% to ₦149.91 million.
• The Reality: The P/E ratio is now over 1,300x and equity is still technically negative (accumulated losses).
Is this 10% daily rally a 'Fundamental Re-rating' because of the Xenergi acquisition, or is it just 'Low Float' volatility? Personally, I’m being 'Stoic' here. I love a turnaround, but I prefer a safety margin.
Which of these are you?
1. Bullish: It’s going to ₦50!
2. Bearish: It’s a trap, the fundamentals aren't there yet.
3. Watching: Waiting for the acquisition details before moving.