Announcement: First Bank Shares Just Got Cheaper

Well, its actually not First Bank but FBNH but you surely know what bank I am talking about. The fall in share prices seem not to be ready to wane just yet as most stocks skidded to losses last week. FBNH was one of such stock, I was pertinently watching as it dangled above N9 for most part of the week and looked like it could just hit below N9 for the first time since January 2012. For weeks many analysts had wondered if this current bearish run will somehow push its share price below the N9 support it appears to have had since the crash started in November (See table below)

Then came close of trading Friday, December 5th and FBNH finally did fall below N9 and remained there at the time of closing. The share price closed at N8.98 its lowest since January 2012. So does this price make the stock any cheaper or expensive? In my opinion, this stock just got all the more cheap considering its astonishingly low P.E ratios and above average fundamentals. I mean, the stock is trading at a P.E ratio of 4.3x and is now also trading at 60% of Price to book ratio. How cheap does that get. In fact, the market value is now just 2.5x its trailing retained earnings. Again, How cheap does that get? Well, considering this market is in a panic mode and a free fall, it could even go cheaper and I won’t bet against it going back up either. Just two weeks ago this stock was trading at above N10.

Share Trading History (Previous 10 trading days)
Date	Open	High	Low	Close	Chg	% Chg	Vol	Value
04-Dec-2014	9.14	9.15	9.06	9.08	-0.06	-0.66	40,828,340	371,991,800.00
03-Dec-2014	9.25	9.4	9.1	9.14	0	0	23,916,710	220,336,900.00
02-Dec-2014	9.4	9.5	9.07	9.14	-0.36	-3.79	58,833,600	547,483,600.00
01-Dec-2014	9.81	10	9.5	9.5	-0.45	-4.52	18,144,660	175,295,500.00
28-Nov-2014	10.23	10.5	9.89	9.95	-0.45	-4.33	34,606,850	350,865,200.00
27-Nov-2014	10.05	10.55	10.01	10.4	0.43	4.31	18,377,990	190,719,400.00
26-Nov-2014	9.64	10.12	9.51	9.97	0.44	4.62	97,615,220	984,553,000.00
25-Nov-2014	9.48	9.59	9.48	9.53	0.13	1.38	47,474,820	452,168,100.00
24-Nov-2014	9.33	9.5	9.22	9.4	0.08	0.86	53,929,900	501,474,900.00
21-Nov-2014	9.2	9.35	9.17	9.32	0.22	2.42	47,981,470	441,541,400.00