GTB shares hits new one year low price   

Dec 7 (Lagos) - Shares of GTB ( GTCO ) formerly listed as GUARANTY have hit a new one year low price below N 24.00 per unit in intra-day trading this afternoon. 

What's going on?

There is a lot of chatter on social-media regarding the Innoson Motors legal battle with GTCO which has been on going for a long time. While fans of Innoson believe they have a case experts may differ on the same. The amount is in the region of N 33 billion which is not going to cause big problems to GTCO if they are ordered to pay it but some social media self-proclaimed experts think that this could lead to the Bank collapsing or being taken over by Innoson. Some of them are even saying that the only reason GTB turned into a holdco structure was because they were scared of Innocen. A lot of people are exposed to such discussions so it creates a negative image for GTB and as a result some people would avoid the Bank. 

The corporate communications of the Bank has not even bothered to respond to the wild discussions surrounding the Bank in social media which shows that they are not bothered. 

The quarterly results from the Bank were also not great and are playing a part in the share price decline however that is same industry-wide and is not company specific. 

Now what?

The decline in the share price could present a good entry point to long term minded investors because let us not forget that this is Nigeria's biggest Bank. They pay an interim dividend and a final dividend which is not great by any means but that yield is going up with the decline in stock price and dividend hunters will not miss that fact that the dividend is almost guaranteed here and if one has the ability to hold long term then this price is juicy. 


Both ZENITHBANK and GTCO are in the N 23-24 range and that is something that we cannot remember seeing. Either one is overvalued or the other is undervalued, we believe the latter to be the case. 

The resolution of the Innosen case will put a rest on all the wild speculation going on in social media regarding the future of GTCO and once foreign investors start looking at Nigeria again, this would be one of the first stocks to be noticed. 

reporting for on Tuesday, December 7 2021 from Lagos, Nigeria
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