The stock price of GameStop, an American video game, consumer electronics, and gaming merchandise retailer headquartered in Grapevine, Texas, United States, jumped by almost 80 percent on Friday following the surge in short-sellers and amateur traders interest in the once struggling video company.
GameStop, whose 5,509 retail stores spread across the United States, Canada, Australia, New Zealand, and Europe as of February 1, 2020, struggled for sales during the lockdown. However, it has found interests in amateur retail traders that are predicting that the gradual reopening of the economy due to COVID-19 vaccine distribution would boost the company’s sales in 2021.
Operating mainly under the GameStop, EB Games, ThinkGeek, and Micromania-Zing brands, GameStop has gained 245 percent in 2021 alone and could do as much as 30 percent today in US premarket trading.
According to Kim Doo-yong, chief executive officer at Must Asset Management, a Korean hedge fund that invested in GameStop and had a 4.7 percent stake in the company as of April 2020, Must Asset management is now less bullish on GameStop due to its volatile and unpredictable nature.
“We have become less bullish and turned more neutral on GameStop,” Kim said in an interview with Bloomberg on Monday. “This stock will continue to be very volatile and unpredictable in the short term.”
He, however, said “We are still very positive about the new management at GameStop. We believe Ryan Cohen and his team can repeat the success he realized at Chewy.com.”
Ryan Cohen co-founder of Chewy.com that was sold for $3.35 billion in 2017 invested $76 million in GameStop, the amount has now risen by 400 percent to over $380 million, according to a SEC filing.
Presco Plc to Hold Emergency Meeting to Recommend Acquisition of Private Company to Shareholders
Presco Plc, an agro-industrial company, has notified shareholders of the company, the Nigerian Exchange Group and the investing public that the Board of Directors of Presco Plc will hold an emergency meeting on Thursday 24th June, 2021 to recommend for the shareholders to consider the acquisition of an existing private company through shares.
The existing private company, according to a statement signed by Patrick Uwadua Esq., Company Secretary, Presco Plc, is in the same line of business with Presco Plc.
Presco said once considered, a resolution will be passed at the company’s next General Meeting to authorise the acquisition of all the shares of the existing private company.
Meanwhile, the company commenced its closed period on today, Wednesday 16 June 2021 until 24 hours after the decisions taken at the Board Meeting are released to the public.
Cornerstone Insurance, Morison, Others Lead Gainers as Stock Market Gains
Nigerian Exchange Group rebounded from 1.66 percent decline recorded on Tuesday to close with 0.15 percent gain on Wednesday as more stocks closed in the green.
Investors traded 302,722,917 shares valued at N2.809 billion during the trading hours of Wednesday, against the 297.35 million shares worth N3.65 billion that were exchanged in 4,402 deals on Tuesday.
Market value of listed stocks appreciated from N20.07 trillion on Tuesday to settle at N20.099 trillion on Wednesday.
Nigerian Exchange Group All-Share Index gained 0.15 percent from 38,507.29 index points on Tuesday to 38564.70 index points on Wednesday.
Cornerstone Insurance led gainers with 10 percent, while Morison followed with 9.68 percent as shown below. Sterling bank emerged the most traded stocks with 37473362.00 shares valued at N57825053.65.
|CORNERST||N 0.50||N 0.55||0.05||10.00 %|
|MORISON||N 1.24||N 1.36||0.12||9.68 %|
|LEARNAFRCA||N 0.92||N 0.98||0.06||6.52 %|
|AFRIPRUD||N 6.05||N 6.40||0.35||5.79 %|
|COURTVILLE||N 0.20||N 0.21||0.01||5.00 %|
|ABBEYBDS||N 1.05||N 0.95||-0.10||-9.52 %|
|CHIPLC||N 0.74||N 0.67||-0.07||-9.46 %|
|CWG||N 1.24||N 1.15||-0.09||-7.26 %|
|WAPIC||N 0.57||N 0.53||-0.04||-7.02 %|
|REGALINS||N 0.48||N 0.45||-0.03||-6.25 %|
Dangote Cement Completes Issuance of N50 Billion Series 1 Fixed Rate Senior Unsecured Bonds
Dangote Cement, Africa’s largest cement producer, announced it has successfully issued N50 billion Series 1 Fixed Rate Senior Unsecured Bonds under the company’s new NGN300 billion Multi-Instrument Issuance Program.
The leading manufacturer disclosed in a statement signed by Edward Imoedemhe, Deputy Company Secretary, Dangote Cement Plc.
According to the statement, the bonds were issued on May 26 2021 at coupon rates of 11.25%, 12.50% and 13.50% for the 3, 5 and 7-year tranches respectively.
The statement read in part, “Despite market headwinds, the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors.
“The proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements. Aside from this first issuance of a traditional bond under the new Multi-Instruments Programme, Dangote Cement has registered a programme enabling it to consider different types of fixed income instruments to cater for different type of investors.”
“The ability to issue Green Bonds and Sukuk will enable the company leverage the depth and breadth of the Nigerian market.”
Commenting on the bond issuance, Michel Puchercos, Chief Executive Officer of Dangote Cement Plc. stated: “This bond issuance allows us move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our cost competitiveness.
“We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance.”
Absa Capital Markets Nigeria acted as Lead Issuing House for the Series 1 Bonds, and Stanbic IBTC Capital, Standard Chartered Capital & Advisory Nigeria Limited, United Capital Plc, FBN Quest Merchant Bank, FCMB Capital Markets, Coronation Merchant Bank, Ecobank Development Corporation Nigeria, Futureview Financial Services, Meristem Capital Limited, Rand Merchant Bank, Quantum Zenith Capital and Vetiva Capital Management acted as Joint Issuing Houses. The Bonds will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
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