Cadbury Plc sets new 4-yr High, Drops in Today’s Session

Tuesday, February 12, 2013 12.03PM/ The Analyst

See Update as at Close of Business Below Cadbury Plc (http://www.proshareng.com/quote/CADBURY) has experienced an increased patronage on the Nigerian bourse with its price trend showing a northward trend, a reflection of a fresh optimism towards the stock. Gross Opening Closing Earnings Year Price (N) Price (N) YTD (mln) PAT 36.9 23.89 2008 -35.26% 24,298 -2,752 22.7 10.49 2009 -53.79% 25,585 -1,235 10.49 25.62 144.23% 2010 29,170 1,168 26.8 11.4 2011 -57.46% 34,110 3,700 11.4 29 154.39% 2012 29 40.81 2013 40.72%
Source: NSE/Proshare Research

The share price of the company has recovered from the market crash experienced in 2008 when it plunged by -53.79% in 2009, following the -35.26% loss recorded in the year. In 2010, the stock experienced improved bargain posture to record +144.23% gain, erasing the loss incurred during the market crash. Be that as it may, the stock experienced weak bargain trend to close 2011 with -57.40% loss which was again reversed in 2012 when it recorded +154.39% gain. In the current year 2013, the stock has recorded +40.72% gain. This in our opinion could not be isolated from the recent corporate announcement made by the company to increase its stake and initiate full ownership of its own cocoa Processing unit (Stanmark Cocoa Processing Company). http://www.proshareng.com/news/19259 In addition, the price trend analysis indicates a strong bullish position which buttresses the renewed optimism noted above. The stock is comfortably trading above its short and mid-long term price moving averages, indicating strong willingness on the part of the investors to pay higher in the near term.

The share price of Cadbury Plc closed with +5% gain on Monday (February, 11th 2013) at N40.81kobo, hitting a new 4-year high from its previous of N50.51kobo

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recorded on April 4th 2008 (representing a +70.82% price appreciation against the year close in 2008). Evidently, the stock is yet to break through its five year high of N57.54kobo recorded on February 13th 2008, losing 29.08% when compared with the peak recorded in the 2008.

Notwithstanding, the price trend analysis below provides an indication of an impressive price appreciation trend of +346% in the last 12months’ trading sessions.

Technical analysis reveals a sustained bargain trend in the last 14weeks, recording +66.57% price appreciation, following 3weeks price retracement recorded between October 19th and November 9th 2012. UPDATE ON CADBURY PLC
Tuesday, February 12, 2013 14.40PM/ The Analyst

As at the close of trading today, Cadbury Plc fell by -0.21 to close at 40.60 from the previous day’s close of 40.81 off 84 trades with total volume/value of 528,540/21,760,743.28.

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