Japaul Oil records all time new low, still nose-diving.
Category: Investors NewsBeat
April 08, 2012
Recently, Japaul Oil Plc broke its all time support level of N0.61kobo recorded on 17th November 2011 to close at new low of N0.58kobo, indicating -72.41% dip below the listing price in 2005.
Precisely, April 5th 2012, the stock dipped further to close at all time low of N0.56kobo while all technical indicators reveal a further decline as sell off pressure dominated- this suggests a strong bearish sentiments towards the stock.
In a bearish market, the principle of fair value will always prevail as investors tend to punish stock/market severely if such is found to be overvalued before the downtrend. The general bearish sentiment in the market as noticed across the board has put the year to date market performance at a low of +1.02%.
To this regard, analysis of the price movement of Japaul Oil Plc showed that the stock hit its high of N1.02kobo for the year on the January 5th 2012. However, the stock plunged considerably to close lower at N0.56kobo on April 5th 2012 and this translates to -45.10% loss so far in the current year.
More so, a recent technical review of market sentiments towards the stock being top loser in the week ended April 5th 2012 revealed a strong bearish sentiment towards the stock as noted above.
This further signified possible erosion/weakness of shareholders loyalty towards the stock while the negative trend is likely to continue, all things being equal.
We also observed that there was no signal of fresh flow of cash into the stock as revealed by technical indicators while investors maintained consistent sell tendency towards the stock.
Analysis of the price movement further revealed a prevailing bearish sentiment. The 23.89% gain recorded for the year 2010 has been completely erased by -35.71% loss recorded in the year 2011. So far in the current year, the stock has booked another significant loss of -37.78%- revealing a continued falling trend into negative zone.
More so, a comparison analysis of the price trend with the general market trend revealed a worse performance of the stock, plunging further into red zone with YTD loss of -37.78% while the key benchmark indices is showing a resilient posture with YTD performance of 1.02% gain.
Furthermore, a peer analysis of the Oil & Gas subsector revealed Japaul Oil Plc as worst performing stock so far in the current year within the subsector.
On a final note, the outlook revealed a depressed posture with continued ouflow of funds- a pointer to a further decline to nominal value. Though, a trend reversal is not in doubt, if and only if the key fundamentals could drive it.
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